The Australian dollar fluctuated in a tight range slipping towards the Asian session to stabilize near its lowest level in almost six months against the US dollar following developments and economic data that followed it on the Australian economy and on the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world .
At 0235 GMT, the AUDUSD fell 0.17% to 0.6870 compared with the opening levels at 0.6882 after the pair reached a low of 0.6867, while the pair reached a high of 0.6883.
We have followed the Australian economy to reveal the May Industrial PMI preliminary reading which expanded to 51.1 versus 50.9 last April, in conjunction with the preliminary reading of the PMI for the month of March which also showed an expansion To 52.3 versus 50.1 in April.
On the other hand, investors are currently waiting for the US economy to read the Jobless Claims for the week ending May 18th, which could reflect a rise of 3K to 215K vs. 212K last week, Investors' claims for the week ending on the 11th of this month rose 9,000 to 1,690,000 versus 1,660,000.
This comes before we see the largest industrialized country in the world disclosure of the preliminary reading of the Industrial Purchasing and Service Index Markit for the United States for the month of May, amid expectations for the expansion of the industrial sector to 53.0 compared to 52.6 in April, and the expansion of the service sector to what 53.6 versus 53.0 in April.
To the release of the housing market data with the release of the new home sales index, which may indicate a decline of 2.5% to 678 thousand homes compared to a rise of 4.5% at 692 thousand homes in March, and this comes hours after the disclosure of minutes of the meeting of the Federal Market Commission In which the Fed's monetary policymakers expressed their willingness to pursue a policy of patience.
Technical Analysis
The AUDUSD has been trading sideways and narrow range since yesterday and stabilizes below 0.6900. Therefore, the bearish scenario will remain unchanged, relying on the move within the descending main channel shown in the image, supported by the negative pressure formed by SMA 50 , Waiting for a visit to 0.6800 as the next major station, with a reminder that stability below 0.6945 represents the first condition for the continuation of the suggested decline.
The trading range for today is expected among the support at 0.6820 and the resistance at 0.6945.
The general trend for today is bearish.