AUDUSD analysis

The Australian dollar fluctuated in a narrow range sloping upward during the Asian session, to witness the resumption of its rebound from its high since February 25, when it tested its highest since May 19, 2015 against the US dollar, following the developments and economic data that they followed on the Australian economy and on the cusp of Economic developments and data expected on Friday by the US economy, the largest in the world.

At exactly 03:42 AM GMT, the Australian dollar against the US dollar fell 0.27% to 0.7755 levels compared to opening levels at 0.7776, after the pair achieved its lowest level during the session's trading at 0.7753, while it achieved the highest at 0.7778.

We have continued to unveil the preliminary readings of the industrial and service purchasing managers ’indicators, in addition to the Markit composite from Australia. The same composite index narrowed the breadth to a high of 58.1, compared to 58.9 in April.

This came before we witnessed the Australian Bureau of Statistics unveiling the preliminary seasonally adjusted reading of the retail sales index, which showed a slowdown in growth to 1.1% compared to 1.3% in the previous reading for the month of March, beating expectations for a slowdown in growth to 0.5%.

On the other hand, investors are currently awaiting the unveiling of the preliminary reading of the service and industrial PMI Markit index from the United States, which may clarify the expansion of the industrial sector of the second largest industrial country in the world to a peak of 60.0 compared to 60.5 in April and the shrinking of the expansion of the service sector, which represents Two-thirds of America's GDP rose to a high of 64.3, compared to 64.7 in April.

This comes before the US economy witnesses the release of the existing home sales reading, which may reflect a 0.8% rise to 6.06 million, compared to a 3.7% decline at 6.01 million homes last March, leading to the participation of a member of the Federal Open Market Committee and the President of the San Francisco Federal Reserve. Mary Daly in a panel discussion titled "Wage Dynamics" at an online conference hosted by the National Bureau of Economic Research.

Other than that, we followed last Wednesday the Federal Reserve unveiling the minutes of its last meeting held on April 27-28, in which the short-term reference interest rates were kept at their lowest ever levels between zero and 0.25%, and on a buy-out program. Bonds of more than $ 120 billion a month until the Federal Open Market Committee targets for unemployment and inflation.

Technical analysis

The Australian dollar against the US dollar finds it difficult to surpass 0.7765 level, to show some slight bearish tendency now, affected by the negativity of the stochastic indicator, waiting for a positive momentum enough to push the price to resume the bullish trend, whose next main target is at 0.7890.

So far, the uptrend scenario is still valid and effective unless breaking 0.7710 level and holding below it.

The expected trading range for today is between 0.7710 support and 0.7820 resistance

The expected general trend for today: Bullish