Fundamental view:

US New Home Sales at 24th July created a bearish trend whereas Australia RBA Gov Lowe Speech at 21st July, Australia Retail Sales monthly report at 22nd July, US Unemployment Claims at 23rd July, Australia Flash Manufacturing PMI at 23rd July created bullish trend for the pair.

Optimistic speech of RBA Deputy Gov Debelle last week also created a favorable atmosphere for AUD hence AUD/USD showed a bullish trend last week. The pair has broken the July 2019 high of 0.7081.

The major economic events deciding the movement of the pair in the next week are Reserve Bank of Australia Assist Gov Kent Speaks, US CB Consumer Confidence at Jul 28, Australia Trimmed Mean CPI quarterly report, FOMC Press Conference at Jul 29, US Advance GDP quarterly report, Unemployment Claims at Jul 30.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 2.06% higher than the previous week. Maintaining high at 0.7182 and low at 0.6972 showed a movement of 210 pips.

In the upcoming week we expect AUD/USD to show a bullish trend. The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout above 0.7201 may open a clean path towards 0.7297 and may take a way up to 0.7411. Should 0.6991 prove to be unreliable support, the AUDUSD may sink downwards 0.6877 and 0.6781 respectively. In H4 chart, formation of an Ascending Scallop chart favors prospects of a bullish trend. Also to be noted Spinning Top formation exerts the expectation of uptrend for the pair.