Fundamental view:

Aussie showed a mixed trend for the past week. US Empire State Manufacturing Index on 17^th Aug and US Crude Oil Inventories on 19^th Aug framed bullish trend for the pair whereas US Building Permits, Housing Starts on 18^th Aug and Australia Flash Manufacturing PMI on 21^st Aug set a bearish environment for the pair.

The Dollar becomes stronger than Aussie in the previous week which made the pair to struggle last week.

The major economic events deciding the movement of the pair in the next week are US CB Consumer Confidence at Aug 25, Australia Construction Work Done quarterly report US Core Durable Goods Orders monthly report at Aug 26, Australia Private Capital Expenditure quarterly report, US Prelim GDP quarterly report, Fed Chair Powell Speaks at Aug 27, Jackson Hole Symposium at Aug 27 & 28.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 1.19% higher than the previous week. Maintaining high at 0.7275 and low at 0.7135 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 0.7105 may open a clean path towards 0.7050 and may take a way down to 0.6965. Should 0.7245 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7330 and 0.7382 respectively. In H4 chart Head and shoulder pattern favors prospects of a bearish trend. Also to be noted Three inside down formation exerts the expectation of downtrend for the pair.