AUDUSD analysis 18.09.2020

The Australian dollar fluctuated in a narrow range sloping towards an upward trend during the Asian session to promise its first weekly gains in three weeks against the US dollar amid scarce economic data in the last sessions of this week by the Australian economy and on the cusp of economic developments and data expected today, Friday by the US economy, the largest economy. In the world.

At exactly 03:41 AM GMT, the Australian dollar against the US dollar rose 0.01% to 0.7314 levels compared to opening levels at 0.7313, after the pair achieved its highest level during the session's trading at 0.7334, while the lowest level was at 0.7303.

Investors are awaiting the American economy the release of the current account reading, which may reflect the widening of the deficit to $ 158 billion compared to $ 104 billion during the first quarter of the past, before we witness the release of the leading indicators reading, which may reflect a slowdown in growth to 1.3% compared to 1.4% in July. / July, coinciding with the disclosure of the preliminary reading of the University of Michigan Consumer Confidence Index, which may show an expansion to 75.0 versus 74.1 in August.

This comes hours after the expiry of the FOMC meeting on September 15-16, during which interest rates were kept between zero and 0.25%, the program to purchase Treasury bonds by $ 80 billion per month and mortgage bonds by $ 40. At least monthly, and the disclosure at the time of the expectations of members of the Federal Commission for growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

In the same context, we followed last Wednesday the press conference held by Federal Reserve Governor Jerome Powell, half an hour after the end of the meeting, to comment on the decisions and directions of the committee, which included expectations to remain the leader at zero levels until 2023, in which he expressed the importance of the fiscal stimulus policy To support the economy, as it affirmed the Federal Reserve’s commitment to using all its tools to support the recovery.

Technical analysis

The Australian dollar against the US dollar is stabilizing above the support of the ascending channel, and it gets positive support from the MA 50, to support the chances of achieving potential gains during the upcoming sessions, on its way to test the recently recorded high at 0.7413 initially.

Thus, a bullish bias will be likely for today, keeping in mind that a break of 0.7250 will stop the expected rise and pressure the price to turn to the downside.

The expected trading range for today is between 0.7260 support and 0.7400 resistance

The expected general trend for today: Bullish.