AUDUSD analysis 30.10.2020

The Australian dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound for the second consecutive session from the lowest since July 20 against the US dollar after the developments and economic data that they followed on the Australian economy and on the cusp of economic developments and data expected today, Friday before The American economy is the largest in the world.

At exactly 04:58 am GMT, the Australian dollar against the US dollar rose 0.30% to 0.7050 levels compared to opening levels at 0.7029, after the pair achieved its highest level during the session's trading at 0.7056, while it reached its lowest level at 0.7022.

We have followed up by the Australian economy the release of the producer price index reading, which is a preliminary indicator of inflationary pressures, which showed a growth of 0.4% in line with expectations, compared to a contraction of 1.2% in the last second quarter, while the annual reading of the same index indicated that the deflation had stabilized at 0.4%, without much change. The previous annual reading for the second quarter, contrary to expectations that indicated a widening of the deflation to 0.8%.

On the other hand, investors are currently awaiting the US economy to unveil data on personal spending and income, which may reflect the stability of personal spending growth at 1.0% in September, and an increase in personal income of 0.3% compared to a decline of 2.7% in August. Core PCE growth slowed to 0.3%, from 0.2% in August.

This also comes in conjunction with the disclosure of the unit labor cost index reading, which may reflect the stability of growth at 0.5% during the third quarter, and before we witness the disclosure of the industrial sector data for the largest industrial country in the world with the release of the Chicago PMI reading, which may reflect the contraction of the expansion. To a value of 58.2, compared to 62.4 last September.

Up to the disclosure of the final reading of the University of Michigan Consumer Confidence Index, which may confirm an expansion of 81.2, unchanged from the previous initial reading for the current month, and an expansion of 80.4 in September, with the release of consumer expectations for inflation for the month of October. / October for one year and for the next five years.

Technical analysis

The Australian dollar versus the US dollar managed to touch our first awaited target at 0.7000, and some slight bullish tendency appears affected by the positivity of the stochastic indicator, while the SMA 50 continues to press negatively on the price, awaiting the resumption of negative trades to test the 0.6964 level as a next main target.

Thus, we will maintain our expectations for the downside, provided that it remains below 0.7145.

The expected trading range for today is between 0.6970 support and 0.7100 resistance.

The expected general trend for today: Bearish.