The Australian dollar fluctuated in a narrowly bullish range during the Asian session to see its rebound for the second consecutive session from its lowest since June 21 against the US dollar following the economic data that followed the Australian economy and on the eve of developments and economic data expected Thursday by the US economy Which includes the semi-annual testimony of Federal Reserve Governor Jerome Powell to Congress in Washington.
At 0436 GMT, the AUDUSD rose 0.09% to 0.6965, compared to the opening levels of 0.6959, after reaching a high of 0.6968, while reaching a low of 0.6954.
On the Australian economy, the Melbourne Institute read consumer expectations for inflationary pressures, which showed a drop to 3.2% from 3.3% in June, before we saw housing market data with the release of the Home Loan Index, which showed stability at zero levels versus a decline 0.9% in April, beating expectations that the decline would drop to 0.6%.
On the other hand, the markets are currently looking for the US economy to release inflation data with the release of the consumer price index, which may reflect zero-point stability versus 0.1% growth in May, while the core reading of the same index may show growth accelerating to 0.2% versus 0.1%. The annualized reading of the index may show a slowdown in growth to 1.6% from 1.8%, and the annual reading of the core may reflect growth stability of 2.0%.
This comes in conjunction with the publication of the requests for aid for the week ending on the sixth of this month, which may reflect a decline of 1 thousand applications to 220 thousand, and may indicate requests for continuing assistance for the week ending on June 29 decrease by 4 thousand applications to 1,682 thousand, To the second half of Federal Reserve Governor Jerome Powell's semi-annual testimony on monetary policy before the Senate Banking Committee.
We would like to point out that Powell made his first half-yearly testimony to Congress on monetary policy before the House Financial Services Committee on Wednesday, before the minutes of the Federal Open Market Committee meeting held on June 18-19, During which monetary policy makers at the Federal Reserve raised interest rates between 2.25% and 2.50% for the fourth consecutive meeting.
The AUDUSD is showing some bullish bias to test SMA 50, which is positively affected by Stochastic, but since the price is below 0.7044, our bearish outlook remains valid for the coming period as the price settles within the descending main channel, The outlook starts at 0.6900 and extends to 0.6815.
The trading range for today is expected among the support at 0.6900 and the resistance at 0.7020.
The general trend for today is bearish.