AUDUSD analysis 09.10.2020

The Australian dollar fluctuated in a narrow range sloping upward during the Asian session, to witness its retracement for the third consecutive session since the 29th of September against the US dollar, following the developments and economic data that they followed on the Australian economy and on the cusp of economic developments and data expected today, Friday, by the economy. The US is the largest economy in the world.

At 04:20 am GMT, the Australian dollar against the US dollar rose 0.25% to 0.7183 levels compared to opening levels at 0.7165, after the pair achieved its highest level during the session's trading at 0.7187, while it achieved the lowest level at 0.7161.

We have followed up on the Reserve Bank of Australia's disclosure of its semi-annual report to review financial stability, which presented its assessment of the conditions in the financial system and the potential risks to financial stability, including the global financial environment, specifically, the risks from investment funds and the Corona pandemic, domestic and commercial financial in Australia and specifically The risks of business failure in the Corona pandemic, in addition to the Australian financial system, specifically the use of capital reserves for banks, and that is in addition to regulatory developments.

On the other hand, investors are currently awaiting the US economy the release of the final reading of the wholesale inventories index, which may confirm an increase of 0.5%, unchanged from the previous initial reading for the month of August and against a decline of 0.3% last July. Otherwise, attention is drawn to Markets for any developments regarding the chances of reaching a second stimulus package by the Republicans and Democrats of US policy in the shadow of the tension and attraction between them.

Technical analysis

The Australian dollar against the US dollar is going through a new re-test of 0.7190 and is still below it until now, accompanied by the emergence of clear overbought signs through the stochastic indicator, awaiting the resumption of the expected bearish trend for the coming period, which targets 0.7100 then 0.6964 as next major stations.

On the other hand, we should note that breaching 0.7190 and building a base above it will stop the suggested decline and push the price to resume the main bullish trend again.

The expected trading range for today is between 0.7100 support and 0.7220 resistance.

The expected general trend for today: Bearish.