AUDUSD analysis 19.10.2020

The Australian dollar fluctuated in a narrow, upward range during the Asian session against the US dollar amid scarcity of economic data by the Australian economy at the beginning of this week and in the wake of the economic developments and data that were followed by the Chinese economy, Australia's largest trading partner, and on the cusp of developments and expected economic data today, Monday. The US economy was the largest in the world, which includes the Fed Governor and Federal Open Market Committee members to speak via satellite.
 
At exactly 05:17 am GMT, the Australian dollar against the US dollar rose 0.01% to 0.7088 levels compared to opening levels at 0.7087, after the pair achieved its highest level during the session's trading at 0.7108, while it achieved its lowest level at 0.7072, knowing that The pair started the session on a rising gap after ending last week’s trading at 0.7081 levels.
 
On Tuesday, we are looking forward to the speech of Assistant Governor of the Reserve Bank of Australia about the financial markets, Christopher Kent, about the recent monetary policy measures taken by the Australian Central Bank in the roundtable symposium, before we also see tomorrow, the RBA revealed the minutes of its last meeting held on the sixth of this month Which was kept interest rates at the lowest ever at 0.25%.
 
Other than that, we have followed the National Bureau of Statistics of China disclosure of the seasonally adjusted reading of the GDP for the third quarter, which showed a slowdown in growth to 2.7% compared to 11.5% in the last second quarter, worse than expectations that indicated a slowdown in growth to 3.2%, while the annual reading of the index indicated The same growth accelerated to 4.9% compared to 3.2% in the second quarter, also below expectations that indicated growth to expand to 5.5%.
 
This coincided with the annual retail sales index of China, the largest economy in Asia and the second largest in the world, showed that growth accelerated to 3.3% compared to 0.5% last August, surpassing expectations that indicated an acceleration of growth to 1.7%, and in another context, she explained. China's unemployment rate index reading fell to 5.4% from 5.6% in August, also beating expectations that indicated a decline to 5.5%.
 
We have also followed up by the largest industrial country in Asia and the second largest industrial country in the world after the United States of America, the disclosure of industrial sector data with the release of the annual reading of the industrial production index by the National Bureau of Statistics of China, which showed an acceleration of growth to 6.9% compared to 5.6% in August. / August, also outperforming expectations which indicated growth to accelerate to 5.8%.
 
On the other hand, we followed Saturday the report of the official Chinese news agency Xinhua, which dealt with the fact that Beijing has passed the Export Control Law that restricts exports of controlled substances, which allows China to act against countries that misuse export controls in a way that harms Beijing's interests, and we would like to point out that the report did not It determines which countries are the targets of that law, but it is likely that the United States will be the target of it, after it recently imposed restrictions on the international semiconductor manufacturer, which is the largest Chinese manufacturer of electronic chips.
 
On the other hand, markets are looking forward to a speech by the Fed Governor, who is scheduled to participate later today in a panel discussion on cross-border payments and digital currencies at the annual meeting of the International Monetary Fund, before we witness the release of the US housing market data with the release of a reading. The housing index by the National Association of Home Builders, which may reflect stability at its value of 83 during this month.
 
To the members of the Federal Open Market Committee, beginning with the Deputy Governor of the Federal Reserve, Richard Clarida, who is expected to speak later today about the economic expectations and monetary policy at the default conference of the American Bankers Association, before the speech of the President of the Philadelphia Federal Reserve Patrick Harker about the recovery The economy from the recession left by the Corona pandemic.

Technical analysis

 
The narrow range dominates the trading of the Australian dollar against the US dollar, which hovers around 0.7085, noting that the stochastic indicator is losing its positive momentum, waiting for the price to stimulate the resumption of the expected bearish trend for the coming period, whose next main target is at 0.6964.
 
Note that the continuation of the bearish wave depends on stability below 0.7195.
 
The expected trading range for today is between 0.7010 support and 0.7140 resistance
 
The expected general trend for today: Bearish