Fundamental view:

The Australian dollar has rallied rather significantly during the course of the week but has given up some of the gains on Friday. For election, Joe Biden has 273 electors granted, which means he will become the next occupant of the White House. However, US President Donald Trump has sent to courts his allegations of large-scale fraud and theft. The drama is not over and won’t be for at least a few more days.

Australia Building Approvals monthly report on 2^nd November and US Wards Total Vehicle Sales on 3^rd November created uptrend for the pair whereas US Final Services PMI on 4^th October and US Unemployment Claims on 5^th November created downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are NAB Business Confidence, US JOLTS Job Openings at Nov 10, OPEC Monthly Oil Market Report, Fed Governor Quarles Speech at Nov 11, Australia MI Inflation Expectations, US Initial Jobless Claims at Nov 12, and US PPI monthly report at Nov 13.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 1.85% higher than the previous week. Maintaining high at 0.7289 and low at 0.6991 showed a movement of 298 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 0.7371 may open a clean path towards 0.7479 and may take a way up to 0.7670. Should 0.7073 prove to be unreliable support, the AUDUSD may sink downwards 0.6883 and 0.6774 respectively. In H4 chart cup and handle pattern formation favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.