The Australian dollar fluctuated in a narrowly bullish range during the Asian session to see its rebound from its lowest level since January 4 against the US dollar following the economic developments and data followed Tuesday by the Australian economy and amid a lack of economic data earlier this week. The US economy is the largest economy in the world.
At 02:32 GMT, the AUDUSD rose 0.21% to 0.7077 compared with the opening levels at 0.7062 after recording a high of 0.7083 and a six-week low of 0.7054.
The Australian economy was followed by the Australian National Bank of Business Confidence Index, which showed an expansion of 4 to 3 in December, coinciding with the release of housing market data with the Home Loan Index reading showing a widening decline To 6.1% from 0.9% last November, worse than expectations for a widening of the decline to 2.0%.
On the other hand, investors are looking forward to what Federal Reserve Governor Jerome Powell will speak at the Hope Foundation Rural Policy Forum in Mississippi under the title "Economic Development in High-Poverty Rural Communities". Markets are also looking forward to the outcome of the third round of trade talks Between the United States and China (Australia's largest trading partner) in Beijing this week.
Technical Analysis
The AUDUSD extended yesterday's negative trading around 0.7075 and is under continuous negative pressure coming from SMA 50, supporting the bearish outlook for the intraday basis, where our next target is at 0.7000.
Stability below 0.7185 is important for the continuation of the suggested bearish wave, and a break of 0.7000 will push the price towards 0.6930 directly.
The trading range for today is expected among the support at 0.7000 and the resistance at 0.7120
Support and resistance:
Support: 0.7040-0.6932
Resistance: 0.7108-0.7161
The general trend for today is bearish