AUDUSD analysis 02.10.2020

The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement of the second session from its lowest since September 22 against the US dollar after the developments and economic data that they followed on the Australian economy and on the cusp of developments and economic data expected today, Friday, by the largest American economy Economy in the world.

At exactly 04:02 AM GMT, the Australian dollar against the US dollar fell 0.32% to 0.7162 levels compared to the opening levels at 0.7185, after the pair achieved its lowest level during the session's trading at 0.7158, while it achieved its highest at 0.7190.

We have followed up on the Australian Bureau of Statistics' disclosure of the final, seasonally adjusted reading of the retail sales index, which showed a 4.0% decline compared to the previous initial reading for the month of August and expectations for a 4.2% decline and 3.2% rise last July. The director of the quarterly economic surveys Ben James said. Victoria, which faced phase III and IV restrictions in August, saw a 12.6% decline in seasonally adjusted terms. "

On the other hand, investors are currently awaiting the US economy to disclose labor market data, with the release of the employment change index reading for the sectors other than agricultural, which may reflect 900,000 jobs added compared to 1,371,000 jobs added last August, while the average index reading may indicate Hourly income growth accelerated to 0.5% from 0.4%. This is with the unemployment rate reading showing a decline to 8.2%, compared to 8.4% in August.

This comes in conjunction with the speech of a member of the Federal Open Market Committee and Chairman of the Philadelphia Federal Reserve, Patrick Harker, about the labor market in a webinar, and before we witness by the largest industrialized country in the world the disclosure of the factory orders index reading, which may show a slowdown in growth to 1.5% compared to 6.4% in July, coinciding with the release of the University of Michigan's index of consumer confidence and consumer expectations of inflation for the past month.

Other than that, we followed yesterday the approval of the US House of Representatives bill for a fiscal stimulus package worth $ 2.2 trillion supported by Democrats, but the bill was notably rejected by Republicans, and this came after the failure of talks between House Speaker Nancy Pelosi and the US Treasury Secretary Stephen Mnuchin, in order to reach a bipartisan agreement on the second stimulus package to face the repercussions of the Corona pandemic.

In another context, we followed the tweet of US President Donald Trump on Twitter, in which he expressed that the results of the Corona virus test for his help, Hope Hicks, were positive, and that he and First Lady Melania Trump are waiting for their test results and that they will start the quarantine process, according to the latest figures issued by the World Health Organization The number of HIV cases increased to more than 33.84 million and 1,010,634 people died in 235 countries.

Technical analysis

The Australian dollar against the US dollar found it difficult to confirm the breach of the 0.7190 level, as it found strong resistance there, to start rebounding to the downside, indicating the resumption of the bearish corrective scenario, supported by the negativity of the stochastic indicator.

Thus, the bearish bias will be expected for today, which targets 0.7100 then 0.6964 as the next major stops, noting that the continuation of the bearish trend depends on stability below 0.7190.

The expected trading range for today is between 0.7100 support and 0.7200 resistance.

The expected general trend for today: Bearish.