The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its rebound for the second consecutive session from its high since June 14, 2018 against the US dollar, after the Reserve Bank of Australia revealed the minutes of its last meeting and on the cusp of developments and economic data expected today, Tuesday, before The US economy is the largest economy in the world, which includes the start of the meeting of the Federal Open Market Committee.
At exactly 03:53 AM GMT, the Australian dollar against the US dollar fell 0.01% to 0.7534 levels compared to opening levels at 0.7535, after the pair achieved its lowest level during the session's trading at 0.7528, while it achieved its highest at 0.7546.
We have followed up on the Australian Central Bank disclosure of the minutes of its meeting held at the beginning of this month, during which the short-term reference interest rates were kept at their lowest ever 0.10%, which came in line with expectations at the time, and the minutes mentioned that "there will be The need for sustained policy support for a reasonable period, "and that" the extended period of high unemployment is on the horizons, the national priority to deal with. "
On the other hand, investors are awaiting the US economy to reveal the industrial sector data for the largest industrialized country in the world, with the release of the New York Industrial Index, which may reflect the stability of the expansion at a value of 6.3 during December, coinciding with the release of the import price index reading. Which may indicate a rise of 0.3% compared to a decline of 0.1% last October.
This comes, before we witness the release of the industrial production index, which may reflect a slowdown in growth to 0.3% compared to 1.1% in October, in conjunction with the reading of the energy utilization rate index showing an increase to 73.1% against 72.8%, leading to the start of the FOMC meeting. For the open market December 15-16, during which interest rates are expected to remain at the lowest ever, between zero and 0.25%.
Markets are also looking forward to tomorrow, Wednesday, after the completion of the FOMC meeting, to reveal the committee members ’expectations for growth rates, inflation and unemployment in addition to the future interest rates for the next three years, half an hour before the press conference that Fed Governor Jerome Powell will hold tomorrow to comment on the makers’ decisions. Monetary Policy of the Federal Reserve Bank.
Technical analysis
The Australian dollar against the US dollar opened the trading day with a noticeable decline, to break the 0.7520 level and try to stabilize below it, which puts the price under expected negative pressure during the upcoming sessions, on its way to test the 0.7460 level before returning to rise again.
Therefore, we expect to witness more decline today, noting that this decline is temporary, awaiting a rebound to the upside to resume the main bullish trend again, bearing in mind that breaking 0.7460 will extend the downside wave targeting 0.7355 before any new attempt to rise.
The expected trading range for today is between 0.7440 support and 0.7560 resistance
The expected general trend for today: Temporarily bearish