Fundamental view:

Unemployment Rate on 6th Aug, US Non-Farm Employment Change, Unemployment Rate on 7th Aug created bearish move whereas Australia AIG Manufacturing Index on 3rd Aug, Australia Retail Sales monthly report and US ADP Non-Farm Employment Change on 5th Aug favored bullish environment for the pair

The pressure on dollar last week due to various causes like rising cases of covid 19, delay in Aid package was favorable for Aussie and AUD/USD showed a bullish trend last week.

The major economic events deciding the movement of the pair in the next week are Australia NAB Business Confidence at Aug 11, Australia Wage Price Index quarterly report, US Core CPI monthly report at Aug 12, Australia Unemployment Rate, US Unemployment Claims at Aug 13, US Core Retail Sales monthly report at Aug 14.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.22% higher than the previous week. Maintaining high at 0.7243 and low at 0.7076 showed a movement of 167 pips.

In the upcoming week we expect AUD/USD to show a bearish trend.  The Instrument is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 0.7076 may open a clean path towards 0.6992 and may take a way down to 0.6909. Should 0.7243 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7326 and 0.7410 respectively. In H4 chart, formation of a rising wedge pattern favors prospects of a bearish trend. Also to be noted Bearish Harami pattern formation exerts the expectation of downtrend for the pair.