The Australian dollar rose during the Asian session to see its rebound for the second session in three sessions of its lowest since January 4 against the US dollar following developments and economic data followed by the Australian economy and on the eve of developments and economic data expected Thursday by the US economy largest World economy.
At 04:50 GMT, the AUDUSD rose 0.45% to 0.7121 compared to the opening levels of 0.7090 after recording a high of 0.7122 while a low of 0.7085.
We have followed the Australian economy with the Melbourne Institute reading of consumer expectations of inflationary pressures, which showed growth accelerated to 3.7% versus 3.5% in January, on the heels of a recent interview by Assistant Governor of the Australian Reserve Bank of Financial Markets Christopher Kent at a breakfast XE in Melbourne.
On the other hand, investors are currently looking for the US economy to reveal the reading of retail sales, which account for about half of consumer spending, which represents more than two thirds of the United States GDP, which may reflect a slowdown in growth to 0.1% compared to 0.2% in November last year, While the core reading of the retail sales index may show stability at zero versus 0.2% in November.
The markets are also looking for the PPI, which is a preliminary index of inflationary pressures, which could reflect a 0.1% expansion versus a 0.2% contraction in December, while the annual reading of the same index may show a slowdown of growth to 2.1% versus 2.5% in the previous annual reading for the month of December.
The core reading of the PPI shows a 0.2% growth versus 0.1% contraction in December, while the core annualized reading of the same index may show a slowdown in growth to 2.5% versus 2.7% in the previous December reading, A reading of the index of aid applications, which may reflect a decline of 9 thousand requests to 225 thousand applications during the week of the ninth of this month.
Technical Analysis
The AUDUSD is back to provide a quiet positive trade with today's opening on positive stochastic, but since the price is below 0.7190, our bearish outlook remains valid, supported by SMA 50, awaiting a rebound to visit 0.7000 which is our next main target.
The trading range for today is expected among the support at 0.7050 and the resistance at 0.7190
The general trend for today is bearish