The Australian dollar fell during the Asian session to see its fourth session retreat since December 5 against the US dollar following the economic developments and data that followed on the Australian economy and on the heels of the decisions and directions of monetary policymakers at the Reserve Bank of Australia in addition to the developments and economic data expected On Tuesday by the US economy, the world's largest economy.
At 02:38 GMT, the AUDUSD fell 0.28% to 0.7206 compared to the opening levels of 0.7226, after recording a low of 0.7194, while recording a high of 0.7228.
On the Australian economy, Australia's Industrial Services Index (AIG), which showed contraction to 44.3 versus 52.1 in December, followed the release of the trade balance, which showed a surplus of 3.68 billion Australian dollars against A $ 2.26 billion in November, contrary to expectations of 2.25 billion Australian dollars.
This came in conjunction with the release of the Retail Sales Index which showed a 0.4% decline from 0.5% in the previous reading for November, as opposed to expectations for stability at zero levels. The same indicator excluding inflation for the fourth quarter showed a slowdown of growth to 0.1 Compared to 0.2% in the third quarter, as opposed to expectations that accelerated growth to 0.5%.
Otherwise, the markets are now looking at the RBA's decision on interest rates and the Reserve Bank of Australia's interest rate statement, amid expectations of a short-term benchmark interest rate of 1.50% for the 28th consecutive meeting. Australian Philip Lo at the National Press Club in Sydney.
On the other hand, investors are looking for the US economy to reveal the final reading of the index of the Institute of Service Supply by Markit for the United States, which may reflect the stability of the breadth at 54.2 compared to 54.4 in December, before the disclosure of the index of the Institute of Service Suppliers, which may appear The gap narrowed to 57.2 from 57.6 in December, and we would like to point out that service delivery is important because the service sector in America represents more than two-thirds of GDP.
Federal Reserve monetary policy makers kept interest rates between 2.25% and 2.50% last week while continuing to cut bond purchases by $ 50 billion per month. Federal Commissioner Jerome Powell said that the committee would be patient and monitor economic data as the downside risks to the economy worsened due to the weakening of global growth and volatility of the financial week. Whether or not this approach will continue depends on economic data.
Technical Analysis
The AUDUSD is opening higher today with a strong rally on the Australian Central Bank, pushing the pair to breach the 0.7235 level, so we prefer to stay neutral temporarily until the pair confirms its position on the mentioned level.
We note that stability above this level will push the price to achieve further gains and move towards 0.7335 as the next major station, while stability below it will reactivate the scenario of the bearish trend, which the next targets are located at 0.7170 and 0.7100.
The trading range for today is among the key support at 0.7180 and resistance at 0.7330
The expected general trend for today: neutral