Fundamental view:

Aussie showed an uptrend against the US dollar. The pair benefited from the broad dollar’s weakness because the investors sold the greenback on speculation the US Federal Reserve will have to put tapering in the hold for now, amid the slow recovery of the employment sector. The US August Nonfarm Payrolls report came in somewhat mixed, but the headline figure was quite disappointing, as the country added just 235K new jobs in the month vs. the 750K expected. Whereas Fed Powell expressed concerns about the potential effects of the spread of the coronavirus Delta variant in the economic recovery. Meanwhile, Australian figures released in the last few days were more encouraging than anticipated.

Australia Home Loans monthly report on 2nd September and US Nonfarm Payrolls on 3rd September created downtrend whereas Australia Current Account on 31st August and Australia GDP quarterly report on 1st September created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are RBA Interest Rate Decision at Sep 07, RBA Deputy Governor Debelle Speech, US JOLTS Job Openings, FOMC Member Williams Speech at Sep 08, US Initial Jobless Claims, US EIA Crude Oil Stocks Change at Sep 09 and US WASDE Report at Sep 10.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 2.20% higher than the previous week. Maintaining high at 0.7478 and low at 0.7284 showed a movement of 194 pips.

In the upcoming week we expect AUD/USD to show a bullish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 0.7524 may open a clean path towards 0.7598 and may take a way up to 0.7718. Should 0.7330 prove to be unreliable support, the AUDUSD may sink downwards 0.7210 and 0.7136 respectively. In H4 chart ascending scallop pattern favors prospects of a bullish trend. Also to be noted three outside up formation exerts the expectation of uptrend for the pair.