The Australian dollar fell during the Asian session against the US dollar following the developments and economic data followed by the Australian economy and on the eve of developments and economic data expected on Thursday by the US economy, the world's largest economy, which includes the launch of the economic policy seminar Jackson Hole in the Kansas City Federal Reserve Three days.
At 03:14 am GMT, the AUDUSD fell 0.19% to 0.6768 levels from the opening levels of 0.6781, after the pair reached its lowest level during the session at 0.6765, while achieving the highest at 0.6787.
This was followed by the Australian economy revealed the preliminary reading of the manufacturing PMI for the month of July, which showed a shrinking widening to 51.4 vs. 52.0 last June, and this coincided with the release of the preliminary reading of the services PMI for the month which also showed The expansion narrowed to 51.9 from 52.6 in June.
On the other hand, we are looking forward to the US economy for the release of the claims applications, which may show a decline of 3 thousand applications to 217 thousand applications during the past week last Saturday, before we witness the release of the preliminary reading of the manufacturing and services PMI Markit for America, Expectations were for the manufacturing sector to widen to 50.5 from 50.4 and the services sector widened to 52.9 from 53.0 in July.
Leading indicators, which may show a rise of 0.2% versus a decline of 0.3% in June, coinciding with the launch of the Jackson Hole Symposium, which is attended by global central bankers and finance ministers as well as academics and financial market participants from all over the world. Tomorrow we will see Federal Reserve Governor Jerome Powell's speech on “Monetary Policy Challenges” during the seminar.
This comes hours after the release of the minutes of the Federal Open Market Committee meeting held on July 30-31, in which it was approved to cut interest rates on federal funds for the first time in more than a decade by 25 basis points to between 2.00% And 2.25%, which was in line with expectations, with the view that the reduction came to support the pace of growth and combat the weakness of inflation in the shadows of trade protectionism.
Technical Analysis
AUDUSD continues to fluctuate within the symmetrical triangle shown above, and the price needs to break 0.6745 to activate the negative effect of the mentioned pattern and then rush towards our first major target at 0.6700.
In general, the bearish trend will remain likely in the coming sessions, provided that the price keeps its stability below 0.6830.
Expected trading range for today is between 0.6700 support and 0.6830 resistance.
Expected trend for today: Bearish.