AUDUSD analysis 11.08.2020

The Australian dollar rose during the Asian session, to witness its rebound to the second session from its lowest since the fourth of August against the US dollar, following the economic developments and data that they followed on the Australian economy and on the cusp of economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world.

At exactly 02:56 am GMT, the Australian dollar against the US dollar rose 0.34% to 0.7174 levels compared to opening levels at 0.7150, after the pair achieved its highest level during the session's trading at 0.7177, while the pair achieved its lowest level at 0.7145.

On the Australian economy, we have followed up on the disclosure of the Australian National Bank’s Business Confidence Index reading, which showed a contraction of 14 compared to an expansion of 1 in the previous reading for the month of June, while the reading of the same index of confidence in the current conditions indicated stability at zero levels. Against a contraction of 7 in the previous reading for the month of June.

On the other hand, investors are awaiting the US economy for the release of the producer price index reading, which is a preliminary indicator of inflation, which may reflect a growth of 0.3% against a contraction of 0.2% in June, and the core reading of the same index may indicate a growth of 0.1% against a contraction of 0.3%. While the annual reading of the index may show contraction to 0.7% versus 0.8%, the core annual reading may reflect stability at zero levels versus 0.1% growth.

Technical analysis

The Australian dollar versus the US dollar conducted a test to support the bullish intraday channel and starts providing positive trades now, which keeps our bullish expectations valid and effective, supported by the positivity of the stochastic indicator, waiting to head towards 0.7290 as a next major station.

On the other hand, we should note that a breach of 0.7125 will pressure the price to start a corrective descending wave before returning to the upside again.

The expected trading range for today is between 0.7125 support and 0.7240 resistance.

The expected general trend for today: Bullish.