The Australian dollar rose during the Asian session to see its rebound for the seventh consecutive session of its lowest since January 3 against the US dollar on the eve of developments and economic data expected Wednesday by the largest economies of the euro area Germany and the US economy the world's largest economy at the beginning of this the week.
At 0212 GMT, the AUDUSD rose 0.20% to 0.6973, compared to the opening levels at 0.6953, the pair's lowest during the session, while the pair's highest since June 12 at 0.6980.
Investors are currently waiting for the US economy to release the Durable Goods Orders, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which could reflect stability at zero levels versus a 2.1% drop in April, While the core reading of the index itself may show a 0.1% growth versus stability at zero levels in April.
This comes in conjunction with the release of the trade balance of goods which may show the deficit shrinking to $ 71.8 billion against $ 72.1 billion in April, and the initial reading of the Wholesale Inventories Index, which may indicate a slowdown in growth to 0.6% from 0.8% This comes hours after Federal Reserve Governor Jerome Powell spoke in New York, limiting opportunities for interest rate cuts by the next meeting.
In his speech on economic and monetary policy at the Council on Foreign Relations, Powell said that many members of the Federal Open Market Committee are expecting expansionary measures, adding that the strength of the economic fundamentals supports the continued pace of growth and employment, And the economy continues to grow, while inflation is at the Fed's target.
Powell also noted that the Federal Commission expects inflationary growth to grow despite inflation stabilizing below 2 per cent. He pointed out that the business and agriculture sectors were concerned by the escalation of trade tensions. He added that the Committee's expectations remained positive despite the increasing uncertainty, While confirming that the Fed is closely monitoring developments in the domestic situation with its full readiness to act appropriately.
Technical Analysis
AUDUSD continues to fluctuate around SMA 50, and we are still waiting to confirm a breach of this level to open the way to test the 0.7044 level which represents our next positive target.
In general, the bullish scenario will remain effective over intraday basis unless 0.6865 is broken and stability below it.
The trading range for today is expected among the support at 0.6920 and the resistance at 0.7020.
The general trend for today is bullish.