The Australian dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound for the second consecutive session from the lowest since July 20 against the US dollar on the cusp of the decisions and directions of monetary policy makers at the Reserve Bank of Australia and the developments and economic data expected today, Tuesday, before The US economy is the largest economy in the world, which includes the US presidential elections.
At exactly 03:50 AM GMT, the Australian dollar against the US dollar rose 0.04% to 0.7058 levels compared to opening levels at 0.7055, after the pair achieved its highest level during the session's trading at 0.7063, while it reached its lowest level at 0.7044.
The Australian economy is currently looking forward to the decisions and directions of monetary policy makers at the Reserve Bank of Australia. The Reserve Bank of Australia revealed the short-term reference interest rate statement amid expectations that it will be reduced by 15 basis points to 0.10%, after staying at 0.25% since the meeting. Last March, when it was lowered by 25 basis points, to an all-time low.
Other than that, we followed a Reuters report earlier this week, which touched on the fact that Australian Minister of Agriculture David Littlebraud mentioned yesterday that his country had halted exports of crabs to its largest market in China (Australia's largest trading partner), after the Chinese authorities imposed customs checks. Fresh on seafood last Friday.
Minister of Agriculture Littlebraud expressed that Australia has serious concerns about the inspections that began Friday, and that officials in his country have tried to obtain some clarifications from China and are asking why such a measure was taken. However, there is still a constant risk of delay during the new customs inspections, and to reduce these risks, the majority of exporters have taken a decision to stop sending shipments until more details are announced about the new decisions.
On the other hand, investors are currently awaiting the US economy to reveal the industrial sector data for the largest industrialized country in the world, with the release of the factory orders index reading, which may show an acceleration of growth to 1.0% compared to 0.7% last August, and this comes in conjunction with the elections. The US presidency in the United States between the forty-fifth US President, Republican Donald Trump and Democratic candidate Joe Biden.
Technical analysis
The Australian dollar versus the US dollar continues to fluctuate in a sideways path, and we notice that the stochastic indicator is showing clear overbought signs now, while the SMA 50 continues to press negatively on the price.
Thus, opportunities are available to resume the expected downside move for the upcoming period, whose next target is at 0.6964, noting the importance of stability below 0.7135 for the continuation of the expected decline.
The expected trading range for today is between 0.6960 support and 0.7080 resistance.
The expected general trend for today: Bearish.