The Australian dollar fluctuated in a narrow bullish range during the Asian session against the US dollar to see its fifth session rebound in seven sessions from its lowest level since January 4 following the economic developments and data that followed on the Australian economy and on the eve of developments and economic data expected Wednesday By the US economy, the world's largest economy.
At 02:36 GMT, the AUDUSD rose 0.13% to 0.7174 compared to the opening levels at 0.7165, after hitting a two-week high of 0.7177, while the session's low was at 0.7152.
We have followed the Australian economy from the Melbourne Institute leading indicators which showed stability at zero levels versus 0.3% decline last December, before we saw the reading of the wage price index, which showed a slowdown in growth to 0.5% With the previous reading of the third quarter and expectations at 0.6%, while the annual reading of the same index showed a stable growth of 2.3% in line with expectations.
This comes hours after the minutes of the meeting of the Reserve Bank of Australia, which was held on the fifth of this month, which approved the makers of monetary policy to stabilize interest rates at 1.50% for the twenty-eighth meeting in a row, which came in line with the expectations of analysts at the time, Australian Central Bank Governor Philip Lowe said the outlook for the interest rate was broadly balanced.
Which was then priced in the markets as cautionary comments from the Reserve Bank of Australia. "Over the past year, it was a scenario that the next step up is likely on the scenario that the next step is reduced, and today the odds are moderately balanced," he said. The labor market is stronger and more hawkish, as interest rates may rise, while any weakness in the labor market will hurt the Reserve Bank of Australia to reassess the situation.
On the other hand, investors are waiting for the US economy to disclose the minutes of the Federal Open Market Committee meeting held on 29-30 January, during which monetary policymakers at the Federal Reserve kept short-term benchmark interest rates at 2.25% And 2.50% as the bond repurchase moves down by $ 50 billion per month.
Technical Analysis
The Aussie continues to move within the ascending channel appearing on the chart. Where the price of the resistance breached 0.7152 and reached the upper limit of the channel to bounce back down to the previous level.
The price is determined to rise from the moving averages that are moving below the price in a bullish order (7-20-50)
From the stochastic, the buy saturation area gives an initial indication of the cross, thus losing momentum and getting out of the gap, which might cause us to see a correction of the price movement.
The expected movement for today between the resistance is 0.7197 and the support at 0.7097
The overall path of the movement is rising