The Australian dollar fluctuated in a narrow range slipping into the Asian session to see its rebound to its second-highest session since the beginning of this month against the US dollar following developments and economic data followed Wednesday by the Australian economy and on the eve of the launch of the meeting of the Federal Open Market Committee in Washington.
At 02:48 GMT, the Australian dollar was down 0.3% at 0.7055 compared to the opening levels of 0.7085, after reaching a high of 0.7090.
We have followed the speech of Assistant Governor of the Reserve Bank of Australia, Trevor Kent, under the title "Bonds and Standards" at the Sydney Summit of Kangnos, before we see the minutes of the Reserve Bank of Australia meeting held on the fifth of this month, Cash rates were set at 1.50% for the 29th consecutive meeting, which was then agreed.
Central Bank of Australia governor Philippe Lowe noted that interest rates would support job creation and move forward with the goal of inflation, adding that achieving the goal of full employment is crucial because the labor market is central to the expected recovery of inflation, Labor will increase wage growth in some way that should boost household income and expenditure and provide a balanced weight to the recent fall in house prices.
Lowe also said that the recovery in household spending in Australia is expected to lead to inflationary growth, of course, and that inflationary pressures could be rebounding for other reasons, considering that the likelihood of this happening at the moment is low, which suggests that inflation growth depends Currently on the strength of the labor market, which reflects a good performance other than other economic indicators that reflect a more softer image.
Loye noted that markets are looking to reveal growth data for the fourth quarter, noting that growth data for the second half of last year 2018 were clearly less than the first half, reflecting a global image in many countries, including Australia, adding that there is tension Growing data from the strong labor market and more resilient GDP data and that the Australian Central is devoting extensive resources to understanding this tension.
On the other hand, investors are now eyeing the FOMC meeting in Washington on March 19-20 amid expectations that Fed monetary policy makers will keep interest rates at 2.25% to 2.50% and move forward. Cut back on bond purchases of $ 50 billion a month and market pricing to raise the federal funds rate once this year.
Investors are waiting for Federal Open Market Committee members to reveal their expectations for growth and unemployment as well as inflation and the future of interest rates for the next three years ahead of Fed Chairman Jerome Powell's forthcoming press conference, which recently announced the Fed's intention to be patient and monitor economic data before resuming policy tightening. Cash or not.
Technical Analysis
The AUDUSD is showing some downside bias towards the pivotal support of 0.7044, where the price is affected by stochastic negativity, and the price needs to remain above this level. The bullish scenario remains valid for the coming period, waiting for a breach of 0.7120 to facilitate the move towards our next positive target. At 0.7250.
Keep in mind that a break of 0.7044 will put the price under negative pressure with key targets starting at 0.6900.
The trading range for today is expected among the support at 0.7020 and resistance at 0.7150
The general trend for today is bullish