The Australian dollar fluctuated in a tight range slipping towards the Asian session, reversing its third straight session since Feb. 21 against the US dollar after Federal Reserve Governor Jerome Powell spoke in New York and on the eve of economic developments and data on Friday. Ahead of the Australian economy and its US economy, the world's largest economy.
At 02:58 GMT, the AUDUSD dropped 0.04% to 0.7091, compared to the opening levels of 0.7094 after the pair reached a low of 0.7085 and a high of 0.7130.
The markets are currently looking for the Australian economy to release housing data as the Housing Industry Association's new home sales index released last month before the February CPI was released.
On the other hand, we followed the speech of US Federal Reserve Governor Jerome Powell on "Recent economic developments and long-term challenges" at the New York Citizens' Budget Committee dinner, hours before the economic data released today by the world's largest economy Which includes the publication of spending and personal income readings for the months of December and January.
Investors are also looking for a final PMI reading by Markit on the US last month, which may reflect the stability of the widening at 53.7 vs. 54.9 in January, before the ISI manufacturing index was released, which may show a contraction of 55.6 Compared to 56.6 in January, while the same indicator of price indices may show a widening to 51.6 versus a contraction at 49.6.
This comes in conjunction with the final release of the University of Michigan Consumer Confidence Index, which may reflect a widening to 95.8 from February's preliminary reading of 95.5 versus January's 91.2, as well as consumer expectations of inflationary pressures for a year and five years.
Technical analysis:
The Australian dollar has managed to reach the minimum of the ascending channel it has been trading in since the beginning of this year. Under the influence of the moving averages that press the price to decline, especially as SMA 20 approaches SMA 50 and is ready to cross with it. If this is done, we get a bearish order of the moving averages above the price, thus increasing negative pressure on it
The Stochastic is reaching the oversold area and is therefore a sign of a decline in the bearish momentum on the price in conjunction with the price reaching the bottom line of the ascending channel and we are likely to see a correction and possibly a return to the upside.
A breach of 0.7145 will facilitate the price action towards our main positive target at 0.7250.
The trading range for today is expected among the support at 0.7045 and resistance at 0.7170
The general trend for today is bullish