The Australian dollar rallied during the Asian session to see its rebound for a third session in four sessions since its March 18th low against the US dollar following developments and economic data that followed on the Australian economy and on the eve of developments and economic data expected Wednesday by the US economy larger World economy.
At 03:52 GMT, the AUDUSD rose 0.31% to 0.7162 compared to the opening levels at 0.7140 after the pair hit a high of 19.71 last December 19, while the pair reached its lowest level. During the trading session at 0.7135.
We followed the Australian economy with the Australian Industrial Group's (AIG) Services Index reading, which showed a contraction of 52.1 versus 55.1 in November, before we saw the release of Australian housing market data with the release of Building Permits Which showed a widening of the decline to 9.1% compared to 1.5% in October, worse than the expectations of a decline of 0.3%.
On the other hand, we have followed US President Donald Trump in Washington about US border security and the partial closure of the federal government, which is entering its third week in a row. Otherwise, the markets are looking forward to what the FOMC member and Fed Chairman Eric Rosengreen on the economic outlook for the world's largest economy at the Boston Economic Club.
Before we see the release of the Federal Open Market Committee meeting held on December 18-19, in which the Fed's monetary policymakers agreed to raise the federal funds rate for the fourth time last year by 25 points Under the leadership of Federal Reserve Governor Jerome Powell to between 2.25% and 2.50%, which was expected by the markets at the time.
Technical Analysis
The AUDUSD rallied to the upside to break the 0.7145 level and stabilize above it, indicating signs of bullishness in the coming sessions, but we need to get a daily closing above the mentioned level to confirm positive targets from 0.7200 to 0.7335.
Therefore, we prefer to remain neutral until the price confirms the closing of the daily candle for the level of 0.7145, as trading without it again will return the price to decline and targeting the level of 0.7020 initially. As the price is trading below SMA 50 which is resistance to the price and preventing it from rising
The trading range for today is expected among the support at 0.7060 and resistance at 0.7230
The expected general trend for today: neutral