The Australian dollar fluctuated in a narrow range tilted to decline during the Asian session to witness the rebound for the third session from its highest since late July against the US dollar following the developments and economic data followed by the Australian economy and on the eve of developments and economic data expected Wednesday by the US economy Economy in the world.
At 03:22 am GMT the AUDUSD fell 0.03% to 0.6859 levels from the opening levels of 0.6861, after the pair reached its lowest level during the session at 0.6849, while achieving the highest at 0.6863.
The Australian WISPAC Consumer Confidence Index showed a 1.7% decline to 98.2 versus a 3.6% gain of 100.0 in August, hours after the Australian National Business Confidence Index showed. In the current situation, the breadth has shrunk to 1 versus 4 and 3 respectively in July.
On the other hand, investors are awaiting the US economy to reveal the PPI reading, which is a preliminary indicator of inflationary pressures which may reflect the acceleration of stability at zero levels against the growth of 0.2% in July, while the core reading of the same indicator may show the stability of growth at 0.2 The annualized reading of the same index may also show a stable growth of 1.7%.
In the same context, the core annual PPI reading may reflect a 2.2% vs. 2.1% advance in July, before we see the final release of the wholesale inventory index, which could show a stable growth of 0.2%, little changed from The initial reading for the month of July and against the stability at zero levels last June.
AUDUSD has been able to reach our awaited target when the main descending channel is resisted, accompanied by clear overbought signs through Stochastic, which may press the price to resume the bearish main trend again.
On the other hand, we note that SMA 50 provides positive support for the price, forming a positive incentive that may contribute to breaching the resistance of the mentioned channel and open the way for further gains.
Therefore, we prefer to remain neutral until the price confirms the breach of the resistance of 0.6885 or the breach of the support of 0.6830, noting that a breach of this resistance will extend the bullish wave to reach 0.7020, while a break of support will press the price to resume the bearish trend, whose first target is located at 0.6730.
Expected trading range for today is between 0.6830 support and 0.6920 resistance.
Expected trend for today: Neutral.