The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement to the second session in three sessions from its highest since June 14, 2018 against the US dollar, following the developments and economic data they followed on the Australian economy and on the cusp of economic developments and data expected on Wednesday Before the US economy is the largest economy in the world, which includes the proceedings of the Federal Open Market Committee meeting December 15-16 and the upcoming press conference of Federal Reserve Governor Jerome Powell.
At exactly 03:45 am GMT, the Australian dollar against the US dollar fell 0.13% to 0.7549 levels, compared to opening levels at 0.7559, which is the highest level for the pair during the session's trading, while the pair achieved its lowest level during the session's trading at 0.7546.
We have continued to unveil the preliminary readings of the industrial and service purchasing managers ’indicators in addition to the Markit composite from Australia, and they explained the industrial sector’s expansion to 56.0 compared to 55.8 last November, and the service sector’s breadth shrinking to 57.4 compared to 55.1. To 57.0 versus 54.9, this came before we witnessed the Australian economy the release of the leading indicators reading by the Melbourne Institute, which showed an acceleration of growth to 0.5% compared to 0.3% last October.
On the other hand, investors are waiting for the US economy to reveal the retail sales index, which represents about half of consumer spending, which accounts for more than two-thirds of the US GDP, and which may reflect a 0.3% decline compared to a 0.3% rise in October, while The core reading of the same index may show growth slowing to 0.1%, from 0.2% in October.
This comes before we witness the unveiling of the preliminary reading of the Markit Industrial and Service Purchasing Managers Index from the United States, which may reflect the contraction of the industrial sector in the largest industrial country in the world to 55.9 compared to 56.7 in the previous reading for the month of November, and the expansion of the service sector to 55.7 in November, compared to 58.4.
Up to the disclosure of housing market data, with the release of the housing index reading by the National Association of Home Builders, which may reflect a decline to 88 from 90 in November, in conjunction with the release of the final reading of the wholesale stocks index, which may indicate slowing growth to 0.6% compared to 0.7 % Last September, and this also coincides with the activities of the Federal Open Market Committee meeting in Washington.
It is expected that monetary policy makers at the Federal Reserve Bank will keep the short-term reference interest rates at their lowest level ever, between zero and 0.25% for the sixth consecutive meeting, while revealing the expectations of the members of the Committee for growth rates, inflation and unemployment in addition to the future interest rates. For the next three years, half an hour before Fed Governor Jerome Powell's press conference.
Technical analysis
The Australian dollar versus the US dollar resumed its significantly positive trading yesterday after a temporary decline and approaching the 0.7500 barrier, to re-activate the main bullish trend scenario, which targets 0.7600 as a next major stop, noting that breaching this level will pave the way for more gains. In the short and medium term.
Thus, a bullish bias will be expected for today unless breaking 0.7520 level and holding below it.
The expected trading range for today is between 0.7500 support and 0.7640 resistance
The expected general trend for today: Bullish