The Australian dollar fluctuated in a tight range slipping against the US dollar during the Asian session following the economic developments and data followed Tuesday by the Australian economy and following the speech by Federal Reserve Governor Jerome Powell in Florida and on the eve of developments and economic data expected Tuesday by the US economy The world's largest economy.
At 5:15 am GMT, the AUDUSD dropped 0.16% to 0.6897 compared with the opening levels of 0.6908 after recording a low of 0.6891, while the highest at 0.6929.
We followed the Australian Reserve Bank disclosure of the minutes of the May 7 meeting of the Reserve Bank of Australia, which approved monetary policy makers setting short-term benchmark interest rates at 1.50% for the 31st consecutive meeting, Interest on federal funds by 25 basis points to 1.25% at the time.
On the other hand, we have just followed the speech of Federal Reserve Governor Jerome Powell under the title "Risk Assessment of Our Financial System" at the Financial Markets Conference, in which he expressed the view that commercial lending is not a threat to the US economy such as high-risk mortgages a decade ago, "It seems that today's financial system is strong enough to deal with potential business losses," he said.
In another context, markets are currently looking for housing market data as the Existing Home Sales Index, which may reflect a rise of 2.7% to 5.35 million homes from 4.9% at 5.21 million in March, Federal Open Market Committee Chairman of the Bank of Chicago Federal Reserve Charles Evans about the economy and monetary policy at the Financial Markets Conference in Florida and the speech of Federal Reserve Bank Chairman Eric Rosengren at the New York Economic Club.
The minutes of the Federal Committee meeting held at the end of April and early May are expected to be unveiled on Wednesday, during which monetary policy makers at the Federal Reserve agreed to keep interest rates at between 2.25 percent and 2.50 percent for the third meeting. Respectively, amid a move to cut back on bond buying before it is frozen by next September.
Technical Analysis
The AUDUSD is nearing the 0.6945 level and is still below it. Therefore, the bearishness will continue to prevail over the coming sessions based on stability below the mentioned level, awaiting the move towards 0.6800, which is our next major stop.
The trading range for today is expected among the support at 0.6840 and resistance at 0.6945.
The general trend for today is bearish.