The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session, promising to repel quarterly gains against the US dollar after the developments and economic data that it followed on the Australian economy and on the cusp of developments and economic data expected on Friday by the US economy, which includes the participation of Federal Reserve Governor Jerome Powell in A virtual panel discussion at the Griswold Center for Economic Policy Studies at Princeton University in New Jersey and US President Donald Trump's press conference on China in Washington.
At exactly 03:01 am GMT, the Australian dollar pair rose against the US dollar by 0.06% to 0.6641 levels compared to the opening levels at 0.6637, after the pair achieved its highest level during the trading session at 0.6643, while the pair achieved its lowest at 0.6612.
We have followed the Australian economy on the release of the private sector credit index, which showed stability at zero levels compared to 1.1% last March, contrary to expectations at 0.6%, and this came hours after the Reserve Bank of Australia Governor Philip Lowe said yesterday during his testimony before a committee The choice for the Australian Senate about the Coronavirus is that "the economic downturn may not be as severe as previously thought."
On the other hand, investors are currently awaiting by the US economy, the largest economy in the world, to disclose data on spending and personal income, which may reflect the widening decline in personal spending to 12.6% compared to 7.5% last March, and the expansion of personal income to 7.0% compared to 2.0% In March, a reading of the core personal consumption expenditures price index may explain the decline to 0.3% compared to 0.1% in March.
This comes in conjunction with the release of the merchandise trade balance index, which may explain the widening of the deficit to $ 64.8 billion compared to $ 64.2 billion in March, in conjunction with the release of the initial reading of the wholesale inventory index, which may reflect a decline in the decline to 0.5% compared to 0.8% In March, before the Chicago PMI reading was revealed, which may reflect a contraction of 40.1 versus 35.4 in April.
Up to the disclosure of the final reading of the University of Michigan's index of consumer confidence, which may show the stability of the expansion at a value of 73.7, little changed from what it was in the preliminary reading of the previous month and against 71.8 in April, and this comes before the expected speech of the Federal Reserve Governor Jerome Powell and the US President Donald Trump's press conference on China, Australia's largest trading partner.
The Australian dollar pair against the US dollar made a positive trading yesterday, but it faces strong resistance at 0.6685, waiting for a positive incentive to contribute to pushing the price to breach this level and opening the way towards heading towards our next positive target which is located at 0.6774.
Until now, the bullish scenario is still valid and likely for the coming period, provided that the price maintains its stability above 0.6580 level.
The expected trading range for today is between 0.6580 support and 0.6720 resistance.
Expected trend for today: bullish.