Australian dollar analysis 04.10.2021

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its rebound for the third consecutive session from its lowest since August 23 against the US dollar, following the developments and economic data that we followed about the Australian economy and on the cusp of developments and economic data expected today, Monday by the economy The US is the largest economy in the world.

At exactly 04:11 am GMT, the Australian dollar pair rose against the US dollar by 0.01% to 0.7258 levels, compared to the opening levels at 0.7257, after the pair achieved its highest level since September 28 at 0.7283, while it achieved its lowest level during the trading session. At 0.7252, knowing that the pair started the session on a bearish price gap, after concluding last week's trading at 0.7266 levels.

As we followed the Australian economy, the Melbourne Institute (MI) revealed a reading of the inflation gauge index, which showed a growth of 0.3%, compared to stability at zero levels in the previous reading for the month of last August. Australian Industrial Group (AIG) for September.

Tomorrow, the markets are also looking forward to revealing many economic data for Australia, with the release of the employment advertisements index for September, the Australian Bureau of Statistics revealing the trade balance reading and the final reading of the retail sales index for the month of August, up to the decisions and directions of the Reserve Bank of Australia and the disclosure of the Australian Central Bank. On the interest rate statement, it was expected that it would remain at its lowest ever at 0.10%.

On the other hand, investors are currently waiting for the US economy to release a reading of factory orders, which may reflect an acceleration of growth to 1.1% compared to 0.4% last July. Other than that, the markets are looking forward to tomorrow's speech by the Federal Reserve Deputy Governor and Federal Committee member Randall Quarles about the transformation of (Libor) Flat Rate Interbank Lending Interest at the Las Vegas Structured Finance Association conference.

Technical Analysis

The Australian dollar against the US dollar pair crossed the 0.7225 level to reach the descending channel’s resistance directly, and keeps its stability below it so far, in conjunction with the emergence of negative signals through the stochastic indicator, waiting to motivate the price to resume the main bearish trend, which its next target is at 0.7100.

Therefore, we will maintain our bearish expectations provided the price maintains its stability below 0.7270 level.

The expected trading range for today is between the support 0.7200 and the resistance 0.7300

The forecast general trend for today: Bearish