The Australian dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its retracement to the fourth session in five sessions from the lowest since August 26 against the US dollar after the economic developments and data that we followed on the Australian economy and before the economic developments and data expected today, Tuesday, by the economy. The US is the largest economy in the world.
At exactly 04:09 GMT, the Australian dollar against the US dollar rose 0.33% to 0.7312 levels compared to opening levels at 0.7288, after the pair achieved its highest level during the session's trading at 0.7315, while the lowest level is at 0.7267.
And we continued, the Australian Central Bank revealed the minutes of its last meeting held at the beginning of this month, during which the interest rates for the sixth meeting in a row were fixed at the lowest ever at 0.25%, and monetary policymakers at the Reserve Bank of Australia, through the minutes, touched on the fact that the Australian dollar fell It would provide more help for the economic recovery.
This came in conjunction with the disclosure of housing market data for Australia with the release of the home price index reading for the second quarter, which showed a 1.8% decline compared to a 1.6% rise in the first quarter last quarter, worse than expectations that indicated a 1.3% decline, while the annual reading of the same index indicated a slowdown in the pace of growth. To 6.2%, compared to 7.4% in the first quarter.
On the other hand, investors are currently awaiting the American economy for the release of the import price index reading, which may indicate a slowdown in the pace of growth to 0.5% compared to 0.7% in the previous reading for the month of July, while the annual reading of the index itself may reflect a contraction of the decline to 1.0% compared to 3.3%, and this comes in conjunction with the release of the New York Industrial Index, which may reflect an expansion to a value of 6.2%, compared to 3.7 in August.
This comes before we witness by the largest industrial country in the world the disclosure of industrial sector data with the release of the Industrial Production Index, which may reflect a slowdown in the pace of growth to 1.2% compared to 3.0% in the previous reading for July, while the reading of the utilization rate index may clarify Energy growth accelerated, to 71.7%, from 70.6% in July.
Up to the start of the meeting of the Federal Open Market Committee September 15-16 via satellite in Washington, during which the short-term reference rates for the fifth meeting in a row are expected to remain at between zero and 0.25%, and to reveal the expectations of the members of the committee Federal Reserve rates of growth, inflation and unemployment in addition to the future of interest rates for the next three years.
This comes before we witness tomorrow the press conference of Fed Governor Jerome Powell, which he will hold half an hour after the end of the meeting to comment on the decisions of the committee that previously adopted many stimulus programs to support the economy in the face of the repercussions of the Corona pandemic, and it is mentioned that Powell stated on the sidelines of the Jackson meetings Hall has adopted the Federal Reserve's new inflation policy, targeting average inflation 2% above for some time.
The Australian dollar versus the US dollar cohered well above the support of the ascending channel that appears on the image, to start today with a bullish tendency in an attempt to move away from the aforementioned support, which provides signs of the price direction to resume the main bullish trend, on its way to test the recently recorded peak at 0.7413 initially.
Thus, a bullish bias will be suggested for today, noting that a break of 0.7260 will stop the expected rise and press the price to decline again.
The expected trading range for today is between 0.7260 support and 0.7380 resistance.
The expected general trend for today: Bullish.