The Australian dollar fluctuated in a narrow range slanting toward decline during the Asian session, to witness its bounce to the fourth session in eight sessions from its highest since last March 12 against the US dollar after the developments and economic data that it had reported on the Australian economy and on the cusp of developments and economic data expected on Thursday from Before the American economy, the largest economy in the world.
At exactly 02:58 am GMT, the Australian dollar pair declined against the US dollar by 0.28% to 0.6305 levels compared to the opening levels at 0.6323, after the pair achieved its lowest level during the trading session at 0.6283, while it achieved the highest at 0.6324.
This has followed the disclosure of the initial reading of the Markit Industrial and Services PMI for Australia for the month of April, and the initial reading of the Manufacturing PMI showed that the contraction expanded to 45.6 compared to 49.7 last March, as the initial reading of the Services PMI showed a widening Shrinkage to 19.6, compared to 38.5 in March.
On the other hand, investors are currently awaiting by the American economy the release of the index of subsidy requests for the past week on April 18, which may reflect a decline by 895 thousand requests to 4,350 thousand requests compared to 5,245 thousand requests in the previous weekly reading, while it may appear reading requests The continuous benefit for the last week on the 11th of this month, increasing by 5,295 thousand requests to 17,271 thousand applications compared to 11,976 thousand requests.
This comes before we witness the disclosure of the initial reading of the Markit Industrial and Service Purchasing Managers Index for the United States, which may reflect the widening contraction of the industrial sector in the largest industrial country in the world to a value of 35.1 compared to 48.5 in the previous reading for the month of March, and we may also witness a widening The service sector contracted to 30.5 compared to 39.8 in March.
To reveal the housing market data from the release of the New Home Sales reading, which may explain a 16.0% decline to 643 thousand homes compared to a 4.4% decline at 765 thousand homes last February. In another context, we followed yesterday, and US Treasury Secretary Stephen Mnuchin expressed The fact that his country needs to boost fiscal spending and that 60 million workers is likely to find assistance from the business loan program.
The US Treasury Secretary mentioned Manuchin that the cost of lending to workers who will get loans will be low, given that the interest on federal funds is currently at zero levels, and that came with his discussion that the United States will provide $ 2.6 trillion directly to support the largest economy in the world. Facing the repercussions of the coronavirus outbreak, it reported that the Federal Reserve was providing $ 4 trillion in liquidity.
Other than that, we followed last Tuesday, the Senate announced the agreement of the polar American policy the ruling Republican Party, which has the majority of the Senate and the Democratic Party with the majority of the House of Representatives, on a program to support small companies and medical centers worth $ 484 to address the consequences of the outbreak of the Coronavirus, including $ 320 Billion for small businesses The bill is expected to pass in the House of Representatives later today.
It is reported that US President Trump recently announced his administration’s plan to gradually restart and operate the American economy, indicating that the global medical crisis may subside later, while its economic consequences remain, and according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus has increased to Close to 2.48 million and 169,151 people were killed in 213 countries.
The Australian dollar versus the US dollar shows quiet negative trading to move below SMA 50 again, to record low peaks levels that support the chances of the continuation of the negative scenario suggested in our recent reports, whose goals begin to break the 0.6236 level to confirm the trend towards 0.6097 as the next main station.
Therefore, we are waiting for further decline today provided that the price maintains its stability below 0.6407 level.
The expected trading range for today is between 0.6220 support and 0.6380 resistance.
