Fundamental view:

The Australian dollar is at its highest since September 1 against its American rival and not far from the 2020 high of 0.7413. The AUD advantaged the greenback as the investors dumped the latter in benefit of high-yielding assets. US equities rallied to record highs after US President Donald Trump agreed to begin the transition with President-elect Joe Biden´s staff, also after upbeat US Markit PMIs. However, enthusiasm faded as the week went by,  as other macroeconomic data failed to impress, while corona virus concerns arose. And hence the pair showed a bullish trend in the past week.

Australia Construction Work Done on 25^th August ad Australia Private Capital Expenditure in 26^th August created downtrend whereas US Flash Manufacturing PMI on 23^rd August and US Unemployment Claims on 25^th August created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are OPEC Meetings at Nov 30, RBA Interest Rate Decision, US ISM Manufacturing PMI, Fed Chair Powell Testimony at Dec 01, Australia GDP quarterly report, US ADP Nonfarm Employment Change at Dec 02, US ISM Non-Manufacturing PMI at Dec 03, and US Nonfarm Payrolls at Dec 04.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.80% higher than the previous week. Maintaining high at 0.7399 and low at 0.7265 showed a movement of 134 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 0.7437 may open a clean path towards 0.7485 and may take a way up to 0.7571. Should 0.7303 prove to be unreliable support, the AUDUSD may sink downwards 0.7217 and 0.7170 respectively. In H4 chart rounding bottom pattern formation favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.