Fundamental view:

Australian dollar had a fall against the greenback ending the week just below the 0.7400 level, The US dollar gained strength after the US Federal Reserve delivered as expected. The US Central Bank had kept interest rates unchanged at 0.25% which was widely expected and announced the reduction of its asset purchases by $15 billion per month. On the other hand, The Reserve Bank of Australia announced its monetary policy decision on Tuesday , leaving the cash rate at 0.10% as expected. And the central bank will continue to purchase government securities at a rate of A$4 billion a week until at least February 2022 and formally dropped the 10 basis point target for the April 2024 bond.

Commonwealth Bank Manufacturing PMI on 1st November and US EIA Crude Oil Stocks Change on 3rd November framed bullish trend whereas RBA Interest Rate Decision on 2nd November and ADP Nonfarm Employment Change on 3rd November framed bearish trend.

The major economic events deciding the movement of the pair in the next week are Fed Chair Powell Speech at Nov 08, Australia NAB Business Confidence  at Nov 09, US Initial Jobless Claims, US Federal Budget Balance at Nov 10, Australia Employment Change at Nov 11, US JOLTS Job Openings and Michigan Consumer Sentiment at Nov 12.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.26% lower than the previous week. Maintaining high at 0.7535 and low at 0.7359 showed a movement of 176 pips.

In the upcoming week we expect AUD/USD to show a bearish trend.  The currency pair is trading below the 100 Simple Moving Average and the MACD trades to the downside. A firm breakout below 0.7325 may fall to 0.7254 and may take a way down to 0.7149. Should 0.7501 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7606 and 0.7677 respectively. In H4 chart head and shoulders pattern creates prospects of a bearish trend. Further bearish engulfing formation exerts the expectation of downtrend for the pair.