AUDUSD analysis 29.09.2020

The Australian dollar fluctuated in a narrow range slanting to an upward trend during the Asian session, to witness its retracement of the third 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 on the cusp of economic developments and data expected today, Tuesday, before The US economy is the largest economy in the world, which includes speeches by members of the Federal Open Market Committee.

At exactly 03:49 AM GMT, the Australian dollar against the US dollar rose 0.14% to 0.7081 levels, compared to opening levels at 0.7071, after the pair achieved its highest level during the session's trading at 0.7096, while it reached its lowest level at 0.7070.

Investors are currently awaiting the US economy for the release of the merchandise trade balance index reading, which may explain the widening of the deficit to a value of $ 81.8 billion compared to $ 79.3 billion last July, in conjunction with the release of the preliminary reading of the wholesale stocks index, which may reflect a contraction of 0.1% versus 0.3% in the previous reading for July.

This comes before we witness the disclosure of housing market data with the release of the annual home price index reading, which may show an acceleration of growth to 3.6% compared to 3.5% last June, and before the Federal Open Market Committee member and New York Federal Reserve Chairman John Williams spoke via satellite. Industrial in the US Treasury Market 2020 conference.

Markets are also looking forward to a speech by a member of the Federal Open Market Committee and Chairman of the Philadelphia Federal Reserve Bank Patrick Harker about the economics of artificial intelligence and machine learning in a webinar hosted by the Official Financial and Monetary Institutions Forum, leading to the disclosure of the Consumer Confidence Index reading, which may reflect an expansion to a value of 90.0 compared to 84.8 last August.

And this comes before we witness other members of the Federal Reserve speaking via satellite: Fed Governor Richard Clarida, who will participate in a panel discussion titled "Future Considerations for Treasury Market Resilience" at the US Treasury Market Conference, and Fed Deputy Governor Randall Quarles and who He will participate in a virtual panel discussion on financial regulation at a seminar hosted by Harvard Law School.

Technical analysis

The Australian dollar against the US dollar has been trading in a calm positive since yesterday, to test the 0.7085 level, and as we indicated in our latest report, the price needs to stabilize below this level in order for the bearish trend to remain intact for the coming period, as breaching it will push the price to test 0.7190 areas before any new attempt to decline.

The stochastic oscillator is losing its positive momentum to support the chances of resuming the expected decline, in addition to the negative pressure that the EMA 50 represents, to maintain our expectations for the bearish trend that require stability below 0.7085, noting that our next target is at 0.6964.

The expected trading range for today is between 0.7000 support and 0.7120 resistance.

The expected general trend for today: Bearish.