AUDUSD analysis 27.11.2020

The Australian dollar fluctuated in a narrow range sloping upward during the Asian session, to witness its stability near its high in nearly three months against the US dollar amid economic data on Friday by the Australian economy and its US counterpart, the largest economy in the world.

At 04:34 GMT, the Australian dollar rose against the US dollar by 0.11% to 0.7370 levels, which is the highest level for the pair during the session's trading compared to the opening levels at 0.7362, while the pair achieved its lowest level during the session's trading at 0.7353.

Investors are looking forward next week to the decisions and directions of monetary policy makers at the Reserve Bank of Australia during a meeting in early December next, hours before Australian Central Bank Governor Philip Lowe testified before the Standing Committee for the Economy in the Australian House of Representatives in Canberra, and before the disclosure Second reading of Australia's GDP for the last third quarter.

On the other hand, markets are looking forward, later next week, to Fed Governor Jerome Powell's testimony about the "CARES" Act before the US House of Representatives Financial Services Committee in Washington, and it is reported that Treasury Secretary Stephen Mnuchin sent a message last week to Federal Reserve Governor Powell stating The $ 455 billion allocated to the Treasury under CARES should be available for Congress to reallocate.

Last week, we followed up on the Federal Reserve’s statement, in which it stated that it “prefers that the entire group of emergency facilities that were established during the Corona pandemic continue to play their important role as a support for our economy, which is still suffering from stress and weakness,” and this came within the Fed’s work to reassure financial markets. And investors that credit will remain available to help companies, local agencies and even non-profit organizations during the pandemic.

We would like to point out that some recent report indicates the possibility that the Federal Reserve will expand the adoption of monetary stimulus during the next December meeting, especially after announcing that it will comply with the Treasury Department's request to return unused funds. Otherwise, investors are also looking forward to later next week to The disclosure of the US labor market data for the month of November.

Technical analysis

The Australian dollar versus the US dollar shows slight positive trading in a sign of the price direction to resume the upward trend, noting that the stochastic indicator is providing a positive crossover signal now, waiting for the price to be stimulated to achieve our targets that start at 0.7413 and extend to 0.7530 after surpassing the previous level, noting that The continuation of the bullish wave requires stability above 0.7320.

The expected trading range for today is between 0.7320 support and 0.7430 resistance.

The expected general trend for today: Bullish.