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AUDUSD analysis 04.12.2020

The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement of the second session from its highest since the ninth of August 2018, while it is still in the process of its third consecutive weekly gains against the US dollar after the developments and economic data that followed it on the Australian economy and on On the cusp of economic developments and data expected on Friday by the US economy, the largest in the world.

At exactly 03:55 AM GMT, the Australian dollar fell against the US dollar by 0.12% to 0.7430 levels compared to opening levels at 0.7439, after the pair achieved its lowest level during the session's trading at 0.7425, while the pair achieved its highest at 0.7444.

This was followed by the Australian economy, the Australian Bureau of Statistics revealed the final seasonally adjusted final reading of the retail sales index, which showed a 1.4% rise compared to a 1.6% rise in the previous preliminary reading for October, beating expectations for a 0.5% rise, compared to a 1.1 decline. % In the previous reading for the month of September.

On the other hand, investors are currently awaiting the US economy to disclose labor market data, with the release of the employment change index reading for the sectors other than agricultural, which may reflect 500 thousand jobs added compared to 638 thousand jobs added in October, while the average index reading Hourly income growth stabilized at 0.1% in November, with the unemployment rate reading showing a decline to 6.8% from 6.9%.

This comes in conjunction with the release of the merchandise trade balance reading, which may explain the widening of the deficit to a value of $ 64.7 billion, compared to $ 63.9 billion last September, and before we witness the speech of Deputy Governor of the Federal Reserve and a member of the Federal Open Market Committee, Michael Bowman, about banking services. Community and FinTech at an online event hosted by the Independent American Banking Community.

Markets are also looking forward to the release of the factory orders index reading, which may show a slowdown in growth to 0.8% compared to 1.1% in September. This came amid widespread expectations that lawmakers will also pass a $ 1.4 trillion budget to avoid a government shutdown on the 11th of this month.

Technical analysis

  

The Australian dollar versus the US dollar confirmed the breach of 0.7413 after closing the daily candlestick above it, reinforcing expectations for the continuation of the bullish trend in the intraday and short term, which targets 0.7530 as a next station.

The SMA 50 continues to support the suggested bullish wave, which will remain valid and effective unless 0.7335 is breached and stability below it.

The expected trading range for today is between 0.7380 support and 0.7500 resistance

The expected general trend for today: Bullish

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