The Australian dollar fluctuated in a narrowly bullish range during the Asian session to see its rebound from its lowest level since January 3 against the US dollar following developments and economic data that followed on the Australian economy and on the eve of developments and economic data expected Thursday by the largest US economy World economy.
At 03:07 am GMT, the AUDUSD rose 0.10% to 0.6852, compared to the opening levels of 0.6845, after reaching a high of 0.6858 while the seven month low at 0.6828.
On the Australian economy, the import price index rose 0.9% against 0.5% in the first quarter, below expectations of 1.8%, while the export price index showed growth slowing to 3.8% from 4.5% in the first quarter, Beating expectations that growth will slow to 2.8%, and investors are now waiting for the July CPI to be released.
On the other hand, investors are currently looking for the US economy to release the Jobless Claims reading for the week ending July 27, which could reflect a 6K increase to 212K before we see the final reading of the Industrial PMI by Marquette From the US, which may reflect the stability of the widening at 50.0, unchanged from the previous reading of the previous month and against 50.6 in June.
Leading to the disclosure by the largest industrialized country of the index of the Industrial Supply Institute index, which may show a widening to 52.0 compared to 51.7 in June, while the same index may indicate the price index contraction contraction to 49.1 compared to 47.9, in conjunction with The construction spending index, which reflects a rise of 0.5% versus 0.8%.
This came hours after the Federal Open Market Committee decided to cut the federal funds rate by 25 basis points for the first time in more than a decade, which was expected in the markets, Federal Reserve Governor Jerome Powell during his press conference after the expiration The fact that the decision was made in view of "global developments" and "inflation" is the subject of the meeting of the Federal Commission.
In the same context, Federal Reserve Governor Paul said that the committee's decision at the July 30-31 meeting to cut interest rates to between 2.00% and 2.25% "was not the beginning of a long series of interest rate cuts." To global risk insurance and that it is not necessarily one-time only, reflecting that the course of monetary policy in the future will depend on the impact of global economic data on the performance of the economy.
Technical Analysis
The AUDUSD has succeeded in touching and stabilizing our target at 0.6830, and the price continues to move within the descending channel shown in the image, which keeps the bearish scenario likely over the short term and intraday basis, waiting to exceed the mentioned level to open the way for the downside wave extension towards 0.6700 as a stop deification.
Therefore, the bearish trend will remain in the coming period, noting that failure to break the 0.6830 might push the price for immediate gains targeting the 0.6975 areas before any new attempt to decline.
The trading range for today is expected among the support at 0.6790 and the resistance at 0.6900
The general trend for today is bearish.