The Australian dollar fluctuated in a narrow range slanting to an upside during the Asian session, to witness its highest since the beginning of September, when it tested its highest since the ninth of August 2018, and to promise to resume the monthly gain paths that stopped in the past two months after five months of gains against the dollar The American economy following the developments and the economic data they followed on the Australian economy and on the cusp of economic developments and data expected Monday by the US economy, the largest economy in the world.
At 04:13 AM GMT, the Australian dollar against the US dollar rose by 0.16% to 0.7392 levels compared to the opening levels, which are the lowest level for the pair during the session's trading at 0.7380, while the pair achieved its highest level in three months at 0.7407, knowing The pair started the session on a descending gap after ending last week’s trading at 0.7387 levels.
And we followed up on the Australian economy. The Melbourne Institute (MI) revealed a reading of the inflation gauge, which showed a growth of 0.3% against a contraction of 0.1% last October, while the annual reading of the same index showed an acceleration of growth to 1.4% compared to 1.1%, and that came before To witness the issuance of a reading of the total operating profits for companies, which showed the slowdown in growth to 3.2% compared to 15.8% in the second quarter, worse than expectations of 4.0%.
This came in conjunction with the release of the private sector credit index reading, which showed stability at zero levels, unchanged from the previous reading for the month of September, contrary to expectations that indicated a growth of 0.1%, while the annual reading of the same index showed slowing growth to 1.8% compared to 2.4%. In the previous annual reading for September.
This comes hours before the activities of the Australian Central Bank meeting, and the Reserve Bank of Australia unveiled two monetary policy and interest rate statements amid expectations of fixing the interest at its lowest ever at 0.25%. The Australian is in Canberra, revealing the second reading of Australia's GDP for the third quarter.
On the other hand, investors are currently awaiting the US economy, the largest industrial country in the world, to unveil the industrial sector data with the release of the Chicago PMI reading, which may reflect a contraction of the expansion to 59.4 compared to 61.1 in October, before the disclosure of data Housing market with the release of the Existing Home Sales reading, which may show a rise of 1.1% versus a decline of 2.2% in September.
Other than that, markets are looking forward tomorrow, Tuesday, and the day after tomorrow, Wednesday, to Fed Governor Jerome Powell's testimony about the "CARES" Act before the US Congress, both houses of the House and Senate in Washington. Earlier this month, Treasury Secretary Stephen Mnuchin sent a message to the Fed Governor. Powell suggested that the $ 455 billion allocated to the Treasury under the CARES Act should be available to Congress for reallocation.
Technical analysis
The Australian dollar versus the US dollar continues to rise to succeed in reaching the awaited target at 0.7413, and continues moving inside the bullish intraday channel that supports the chances of surpassing this level and paving the way for an extension of the bullish wave to reach 0.7530 as a next target.
Consequently, the bullish trend will remain valid and effective during the upcoming sessions, provided that the price maintains its stability above 0.7335.
The expected trading range for today is between 0.7335 support and 0.7460 resistance
The expected general trend for today: Bullish