AUDUSD analysis 28.09.2020

The Australian dollar rose during the Asian session, to witness its rebound to the second session from its lowest since July 20 against the US dollar amid scarcity of economic data at the beginning of this week by the Australian economy and its US counterpart, the largest economy in the world, and with an eye for the speech of a member of the Federal Open Market Committee And Cleveland Fed Chair Loretta Meester, later Monday.

At exactly 03:35 am GMT, the Australian dollar against the US dollar rose 0.41% to 0.7058 levels compared to the opening levels at 0.7029, which is the lowest level for the pair during the session's trading, while the pair achieved its highest level during the session's trading at 0.7060, knowing that The pair started the session on a descending gap after ending last week’s trading at 0.7031 levels.

Investors are currently awaiting the American economy for what will be revealed by a member of the Federal Open Market Committee and President of the Cleveland Federal Reserve, Loretta Meester, about equality in a webinar hosted by the African American Chamber of Commerce in Pennsylvania, and the markets are looking forward this week to the speech of many members of the committee Federal Open Market.

Otherwise, the markets are looking forward to tomorrow, Wednesday, to reveal the final reading of the GDP index, which may confirm the contraction of the largest economy in the world 31.7%, unchanged from the previous preliminary reading for the second quarter and against a contraction of 5.0% in the previous reading of the last first quarter, as it may confirm. The final reading of the same index measured by prices showed a shrinkage of 2.0%, unchanged from the previous initial reading, and against a growth of 1.4% in the first quarter.

This coincides with the disclosure of preliminary data for the US labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of job creation to 650,000 jobs compared to 428,000 jobs last August, and this comes hours before the disclosure next Friday For the monthly report on employment except agricultural and unemployment rates in addition to the average hourly income for the month of September.

Technical analysis

The Australian dollar against the US dollar is crawling to the upside to move around 0.7050, affected by the positivity of the stochastic indicator, while the SMA 50 forms continuous negative pressure against the price, supporting the continuation of the bearish trend scenario that targets 0.6964 as a next major station.

Thus, the bearish trend will remain likely for the upcoming period, noting that breaching 0.7085 will push the price to achieve additional gains and test 0.7190 areas before any new attempt to decline.

The expected trading range for today is between 0.6980 support and 0.7100 resistance.

The expected general trend for today: Bearish.