AUDUSD analysis 23.09.2020

The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its lowest since August 12 against the US dollar, after the economic developments and data that they followed on the Australian economy and on the cusp of economic developments and data expected today, Wednesday, by the US economy, which includes the testimony of a bank governor Federal Reserve Jerome Powell to Congress and members of the Federal Open Market Committee speech.

At exactly 04:41 AM GMT, the Australian dollar against the US dollar fell 0.56% to 0.7131 levels, compared to the opening levels at 0.7171, which is the highest level for the pair during the session's trading, while the pair achieved its lowest level in six weeks at 0.7126.

We have continued to unveil the preliminary readings of the Industrial and Service Purchasing Managers' Indicators Markit from Australia, which showed the expansion of the industrial sector to a value of 55.5 compared to 53.6 in August, and the expansion of the service sector to a value of 50.0 against a contraction of 49.0 in August. This came before the retail sales reading showed a decline of 4.2% versus a 3.2% rise in last July.

Other than that, we just followed the report on the fact that economists at Westpac are expecting the Reserve Bank of Australia to cut short-term reference interest rates by 15 basis points to 0.10% during the next meeting of the Australian Central Bank, which is scheduled to take place on the sixth of October. / This coming October.

This comes hours after the Assistant Governor of the Reserve Bank of Australia, in charge of the Risk Management Committee, Jay Debel, gave a speech on Tuesday under the title "The Australian Economy and Monetary Policy" via satellite at the Australian Industry Group conference in which he expressed that the decline in the Australian dollar will benefit The economy and that the RBA is closely watching "mixed" experimental evidence of negative rates.

Yesterday, the Assistant Governor of the Reserve Bank of Australia in charge of the Risk Management Committee, Debel, stated that the policy options for reducing the target return and the rate of facilitating financing for time are an option for the Australian central bank and that the Australian central bank is evaluating other policy options, explaining that increasing the facilitation of term financing is a great easing of monetary policy, adding Intervention in the foreign exchange market is ineffective in the current circumstances.

On the other hand, investors are awaiting the American economy to reveal the housing market data with the release of the house price index reading, which may indicate a slowdown in growth to 0.4% compared to 0.9% last June, in conjunction with the speech of a member of the Federal Open Market Committee and the president of the Bank Cleveland Federal Reserve Loretta Meester at the Chicago Satellite Payments Symposium.

This comes before we witness the unveiling of the preliminary reading of the Markit Industrial and Service Purchasing Managers Index on America, which may reflect the shrinking of the industrial sector in the largest industrial country in the world to a value of 52.5 compared to 53.1 in the previous reading for August, and the expansion of the service sector to It was worth 54.5, compared to 55.0 in August.

Up to the testimony of Federal Reserve Governor Jerome Powell before the House Select Committee in Washington, and in conclusion, Vice Governor of the Federal Reserve and a member of the Federal Open Market Committee Randall Quarles is expected to speak about the economic outlook at the Institute of International Bankers via satellite. Yesterday it was reported that the ball is in the court of Congress to provide support to companies affected by the Corona pandemic.

Technical analysis

The Australian dollar against the US dollar managed to confirm the breach of the 0.7190 level, to complete the formation of the double top pattern that appears on the image, reinforcing expectations for the continuation of the bearish trend in the intraday term, reminding you that our awaited targets start at 0.7100 and extend to 0.6964.

The SMA 50 continues to support the suggested descending wave, keeping in mind that breaching 0.7190 will stop the current negative pressure and lead the price to try to restore the main bullish trend again.

The expected trading range for today is between 0.7050 support and 0.7190 resistance.

The expected general trend for today: Bearish.