The Australian dollar rose during the Asian session to witness its highest since last January 3 against the US dollar, following the developments and economic data that it announced on the Australian economy and on the cusp of developments and economic data expected today by the US economy and in ...
The Australian dollar rose during the Asian session to witness its highest since last January 3 against the US dollar, following the developments and economic data that it announced on the Australian economy and on the cusp of developments and economic data expected today by the US economy and in the shadows and pricing of investors to reopen global economies against Protests escalated in the United States recently.
At exactly 02:20 AM GMT, the Australian dollar pair rose against the US dollar by 0.52% to 0.6933 levels compared to the opening levels at 0.6897, after the pair achieved its highest level in five months at 0.6983, while the pair achieved its lowest during the trading session at 0.6887.
On the Australian economy, we have followed the release of the AIG construction reading, which showed the contraction shrank to 24.9 compared to 21.6 last April, and this came before we witnessed the speech of the Assistant Governor of the Bank of Australia's financial system, Michael Pollock, in a speech Under "Panic, Pandemic and Payment Preferences" in the evolving webcast chain.
Up to the disclosure of housing market data with the issuance of the building permits reading, which indicated a decline in the decline to 1.8% compared to 2.6% last March, contrary to expectations that the decline will widen to 10.8%, in conjunction with the disclosure of the GDP reading, which showed contraction 0.3% in the first quarter compared to 0.5% growth in the fourth quarter, beating expectations for a 0.4% contraction.
In the same context, the annual reading of GDP showed that growth slowed to 1.4%, in line with expectations, compared to 2.2% in the fourth quarter, and that comes hours after monetary policy makers at the Reserve Bank of Australia yesterday kept the short-term benchmark interest rates unchanged. It is reported for the third consecutive meeting at 0.25%, which is the lowest level ever, which came in line with expectations.
On the other hand, investors are currently awaiting by the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the loss of 9,000 jobs compared to the loss of 20,236 thousand jobs in April, and this comes hours before the disclosure after Tomorrow, Friday, the monthly report for jobs except agricultural and unemployment rates, in addition to the hourly rate for the month of May.
This comes before we witness the final reading of the Markit Service Supply Institute index by Markit for the United States, which may reflect a contraction of shrinkage to 37.2 compared to a value of 36.9 in the initial reading for the past month and against a contraction at 26.7 in April, and before revealing a reading of the index Factory orders, which may show a widening decline to 13.7% compared to 10.3 in March.
To reveal the reading of the Institute for Service Supply index that is important in that the service sector represents more than two-thirds of the gross domestic product of the United States, which may explain the contraction shrinkage to 44.2 compared to 41.8 in April, otherwise, according to the latest figures issued by The World Health Organization has increased the number of cases infected with the Coronavirus by more than 6.19 million, and 376,320 people have died in 216 countries.
In another context, the markets assessed the possibilities of the US military deploying in the United States to suppress the strikes and violent demonstrations in the cities over the killing of George Floyd of African descent at the hands of the American police, after the curfew failed to contain the massive protests that included violence and looting with the demonstrators taking to the streets after weeks Closings during the Corona pandemic, which caused millions to lose their jobs.
The Australian dollar versus the US dollar pair opened trading today with a strong rise to succeed in achieving our extended target 0.6900, as it penetrated it to settle above it now, which supports the chances of the continuation of the bullish trend within the upward channel that appears in the picture, noting that the goal of this channel extends to 0.7200.
Therefore, we will be awaiting further increase during the upcoming period, noting that a break of 0.6884 will push the price for a temporary bearish correction before resuming the suggested bullish wave.
The expected trading range for today is between 0.6870 support and 0.7020 resistance.
Expected trend for today: bullish.