The Australian dollar fluctuated in a tight range to rise during the Asian session to see its seventh session rebound in 10 sessions from its lowest since May 17, when it tested its lowest since January 3 against the US dollar following developments and economic data that Followed by the Australian economy and on the eve of developments and economic data expected Wednesday by the US economy.
At 02:05 GMT, the AUDUSD rose 0.11% to 0.6999 compared to the opening levels of 0.6991, after reaching a high of 0.7002, while the lowest at 0.6984.
We followed the Australian economy from the reading of the services sector index, which showed a widening to 52.5 against a contraction of 46.5 in April, before we saw the disclosure of GDP reading, which showed acceleration of growth to 0.4% in line with expectations compared to 0.2% In the fourth quarter, while the same year's annual reading showed that growth slowed to 1.8%, also in line with expectations versus 2.3% in the fourth quarter.
This came hours after the release of the Reserve Bank of Australia's interest rate statement, which included a decision by monetary policy makers at the Reserve Bank of Australia to cut short-term benchmark interest rates by 25 basis points to 1.25% from 1.50%, which was expected by analysts. Before we also see yesterday the talk of Governor of the Central Bank of Australia Philippe Lowe at a dinner for Australian Reserve in Sydney.
On the other hand, investors are currently waiting for the US economy to release preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the slow pace of job creation to 185 thousand jobs added to 275 thousand jobs added in April, before Hours of disclosure of the monthly report of non-agricultural jobs and unemployment rates in addition to the average income per hour for the last month.
This comes before the Federal Open Market Committee (FOMC) and Federal Reserve Governor Richard Clarda gave the opening remarks at the event hosted by the Chicago Federal Reserve Bank, coinciding with the final reading of Markit Institute's Index of Service Providers by the United States, which may reflect the stability of the widening At 50.9 versus 53.0 in April.
This is a significant indicator of the fact that the service sector in America represents more than two-thirds of the gross domestic product (GDP) there. This comes in conjunction with the index of the Institute of Supply Services, which may show a breadth of 55.6 versus 55.6 in April. With federal commissioner and federal governor Michael Bowman giving evidence at the nomination session before the Senate Banking Committee in Washington.
Markets are also looking forward later today to unveil the Beige Book report, which is important in its release two weeks before the FOMC meeting, hours after US Federal Reserve Governor Jerome Powell said the Fed would act appropriately to keep pace with growth. The highest 2% and low unemployment rates in the US, explaining that he closely monitors the implications of trade tensions.
Federal Reserve Governor Paul said yesterday at the event hosted by the Federal Reserve Bank of Chicago that the Federal Reserve does not know how and when trade tensions will be resolved, as he points out that the FOMC takes seriously as long-term inflationary pressures may affect expectations Inflation later, boosting speculation about a possible cut in federal funds rates in the coming period
Technical Analysis
AUDUSD continues to rise gradually approaching our positive target at 0.7044, and therefore our bullish intraday outlook remains intact, noting that we are likely to rebound after touching this target to resume trading within the descending channel.
A break of 0.6925 will halt the current rally and press the pair to move downward, while breaching 0.7044 will extend the pair's gains to 0.7100 as the next major station.
The trading range for today is expected among the support at 0.6945 and the resistance at 0.7060.
The expected general trend for today: temporarily bullish.