AUDUSD analysis 28.10.2020

The Australian dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound to the fifth session in seven sessions from its lowest since September 25, when it tested its lowest since July 20 against the US dollar, following developments and economic data that followed it on the economy Australia is on the cusp of economic developments and data expected on Wednesday by the US economy, the largest economy in the world.
 
At exactly 03:59 am GMT, the Australian dollar against the US dollar rose 0.07% to 0.7134 levels compared to the opening levels at 0.7129, after the pair achieved its highest level during the session's trading at 0.7137, while it achieved the lowest level at 0.7113.
 
We have followed up on the Australian economy revealing inflation data for the third quarter with the release of the consumer price index reading, which showed a growth of 1.6% compared to a contraction of 1.9% in the last second quarter, surpassing the expectations that indicated a growth of 1.5%, and the core reading of the same index showed a growth of 0.4%. Against a contraction of 0.1%, also beating expectations of 0.3% growth.
 
In the same context, the annual reading of the consumer price index for the third quarter showed a growth of 0.7%, in line with expectations, compared to a contraction of 0.3% in the previous annual reading for the second quarter, while the core annual reading of the same index showed the stability of the growth rate at 1.2% during the third quarter, contrary to the expectations that It indicated a slowdown in the pace of growth to 1.1%.
 
On the other hand, investors are currently awaiting the US economy to unveil the merchandise trade balance index reading, which may reflect the widening of the deficit to a value of $ 84.8 billion compared to $ 82.9 billion last August, in conjunction with the release of the preliminary reading of the wholesale stocks index, which may Indicates that the pace of growth stabilized at 0.4% in August.
 
And this comes before we witness the participation of a member of the Federal Open Market Committee and Chairman of the Dallas Federal Reserve Bank Robert Kaplan in a virtual panel discussion with former Bank of England Governor Mark Carney hosted by the Federal Reserve Bank of Dalas. Other than that, the tug of war continues between the two poles of US policy, Republicans and Democrats about Approval of a second stimulus package to support the economy in facing the repercussions of the Corona pandemic.

Technical analysis

 
The Australian dollar against the US dollar did not show any strong movement in the past sessions, to remain stable without resistance for the descending channel, and therefore, there is no change to the bearish trend scenario that depends on stability below 0.7165, while our main awaited targets are at 0.7000 then 0.6964.
 
The expected trading range for today is between 0.7060 support and 0.7180 resistance
 
The expected general trend for today: Bearish