Fundamental view:

US Durable Goods Orders monthly report on 27th, Australia Trimmed Mean CPI quarterly report on 28^th and US Goods Trade Balance on 29^th created a bearish move for the pair whereas US S&P/CS Composite-20 HPI yearly report on 28^th and Australia Import Prices quarterly report on 29^th made a bullish move for the pair.

Prime Minister’s and RBA Assistant Governor’s speech last week favored Aussie and down trending dollar favored a bullish trend last week for the pair.

The major economic events deciding the movement of the pair in the next week are US ISM Manufacturing PMI at Aug 03, RBA Rate Statement at Aug 04, US ISM Non-Manufacturing PMI at Aug 05, US Unemployment Claims at Aug 06, RBA Monetary Policy Statement, and US Average Hourly Earnings monthly report at Aug 07.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.62% higher than the previous week. Maintaining high at 0.7227 and low at 0.7087 showed a movement of 140 pips.

In the upcoming week we expect AUD/USD to show a bearish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 0.7077 may open a clean path towards 0.7012 and may take a way down to 0.6936. Should 0.7217 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7292 and 0.7087 respectively. In H4 chart, formation of a bearish crab chart favors prospects of a bearish trend. Also to be noted Bearish engulfing formation exerts the expectation of downtrend for the pair.