AUDUSD analysis 06.10.2020

The Australian dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound to the sixth session in eight sessions, from its lowest since July 20 against the US dollar, following the developments and economic data that they followed on the Australian economy and amid looking forward to the decisions and directions of the Central Bank of Australia and on the threshold of Economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world, which includes speeches by Federal Reserve Governor Jerome Powell and members of the Federal Open Market Committee.

At exactly 03:59 am GMT, the Australian dollar against the US dollar rose 0.11% to 0.7189 levels compared to opening levels at 0.7181, after the pair achieved its highest level during the session's trading at 0.7195, while it achieved the lowest level at 0.7174.

We followed up on the Australian economy the issuance of the Trade Balance Index reading, which showed a contraction of the surplus to a value of 2.64 billion Australian dollars compared to 4.65 billion Australian dollars last July, worse than expectations that indicated the expansion of the surplus to 5.05 billion Australian dollars, and this came in conjunction with The release of the employment announcements index, which showed growth accelerating to 7.8%, compared to 2.6% in August.

This comes as the market is currently anticipating the decisions and directions of monetary policy makers at the Reserve Bank of Australia, and the Reserve Bank of Australia revealed the statement of short-term reference interest rates amid expectations that the short-term reference interest rates for the seventh meeting in a row will be fixed at the lowest ever at 0.25%. And that is before we witness the Australian Treasury unveiling the annual budget.

On the other hand, investors are currently awaiting the American economy for the release of the merchandise trade balance reading, which may explain the widening of the deficit to a value of $ 66.2 billion compared to $ 63.6 billion last July, before we witness the release of the statistics on job opportunities and job turnover, which It may reflect a decline to about 6.50 million, compared to 6.62 million in July.

This comes, before we witness via satellite the speech of Fed Governor Jerome Powell about the economic outlook at the annual meeting of the National Association for Business Economics, and before the members of the Federal Open Market Committee each of Philadelphia Federal Reserve Bank President Patrick Harker talk about education at a seminar hosted by the Interconnection Center Global, and Dallas Fed President Robert Kaplan on America and the global economy.

Technical analysis 

The Australian dollar versus the US dollar did not show any strong movement since yesterday, and as long as the price is below 0.7190, the bearish trend scenario will remain likely during the upcoming sessions, which targets 0.7100 then 0.6964, noting that breaching 0.7190 will stop the suggested decline and lead the price to shift Towards the rise.

The expected trading range for today is between 0.7130 support and 0.7230 resistance

The expected general trend for today: Bearish.