The Australian dollar fluctuated in a narrow range sloping upwards during the Asian session, to witness its rebound to the eleventh session in seventeen sessions from its lowest since July 20 against the US dollar after Assistant Reserve Bank of Australia Governor in charge of the Risk Management Committee, Jay Debel, delivered a speech under the title "Monetary policy in 2020" at a satellite symposium of Australian business experts and on the cusp of economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world.
At exactly 03:45 am GMT, the Australian dollar against the US dollar rose 0.36% to 0.7312 levels compared to opening levels at 0.7286, after the pair achieved its highest level during the session's trading at 0.7316, while it reached its lowest level at 0.7284.
The Assistant Governor of the Reserve Bank of Australia in charge of the Risk Management Committee, Jay Dibel, expressed a short while ago that he spoke at an event of Australian business experts two years ago in December 2018, and that in his speech at the time he addressed lessons and questions from the global financial crisis that occurred a decade ago. A long time ago, adding that the global economy is facing another crisis that takes a different shape, the source of the crisis this time is health, not financial.
Debel noted that the output contraction in the global economy and the Australian economy is greater than the 2008/2009 crisis, but the lessons learned from the financial crisis have contributed to reducing the impact this time and will help accelerate the ongoing recovery, noting that the lessons highlighted by the 2018 crisis, on top of which are that influence is important Pointing out that the regulatory response since 2008 aims to address influence at the core of the financial system, and that the targeted policy response is effective.
On the other hand, investors are currently awaiting the US economy to unveil the housing market data, with the release of the house price index reading, which may indicate a slowdown in growth to 0.8% compared to 1.5% last August, in conjunction with the release of the annual reading of the S&P Composite Index - 20 for house prices, which may show growth accelerating to 5.3%, compared to 5.2% in the previous annual reading for August.
Down to the disclosure by the largest industrial country in the world of industrial sector data, with the release of the Richmond Industrial Index reading, which may reflect a contraction of the expansion to a value of 20 compared to 29 last October, in conjunction with the disclosure of the consumer confidence index reading, which may appear The breadth also narrowed to 97.7, from 100.9 in October.
Other than that, we have just followed the announcement of the US Public Services Administration that Joe Biden has won the 2020 US presidential elections, to become the Democratic Party’s candidate for the forty-sixth US president to succeed Republican President Donald Trump, whose term ends on January 20 of next year 2021, the matter The next is the launch of a formal transition of power in the United States.
We also followed the report, which dealt with the fact that Biden is planning to nominate former Federal Reserve governor Janet Yellen for the position of Treasury Secretary, and this comes in the wake of the rare clash that occurred between the Treasury Department under the Trump administration with the Federal Reserve over the extension of the Fed's pandemic emergency lending program, especially after Treasury Secretary Stephen Mnuchin refused to extend the emergency loan programs created with the Federal Reserve.
Technical analysis
The Australian dollar versus the US dollar provided negative trades yesterday after it encountered strong resistance at 0.7340, to test the ascending triangle support that appears in the image, noting that the price is starting to rise now, waiting to surpass the mentioned resistance to confirm opening the way towards our main positive target at 0.7413...
From here, we will continue suggesting the bullish trend for the upcoming period, unless breaking 0.7270 then 0.7210 and holding below it.
The expected trading range for today is between 0.7260 support and 0.7400 resistance
The expected general trend for today: Bullish