Fundamental view:

In the last week, The aussie just went with the flow these days, boosted by rallying equities and persistent hopes among speculative interest, which believes that the economic chaos triggered by the coronavirus pandemic is on its final stages. On the other hand, the greenback remained pressured by a combination of factors such as political turmoil in the US and a steeper than anticipated economic setback at the end of the year amid resurgent COVID-19 cases.

In the last week, Australia Commonwealth Bank Manufacturing on 4^th January and Australia Commonwealth Bank Services PMI on 6^th January created bearish trend for the pair whereas US Markit Services PMI & EIA Heating Oil Stocks Change on 6^th January and US Trade Balance on 7^th January created bullish trend for the pair.              

The major economic events deciding the movement of the pair in the next week are Australia Retail Sales monthly report at Jan 11,US JOLTS Job Openings at Jan 12, US CPI monthly report at Jan 13, US Initial Jobless Claims, Fed Chair Powell Speaks at Jan 14, Australia Home Loans monthly report, and US Retail Sales monthly report at Jan 15.

AUD/USD Weekly outlook:

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 1.00% higher than the previous week. Maintaining high at 0.7820 and low at 0.7643 showed a movement of 177 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 0.7658 may open a clean path towards 0.7562 and may take a way down to 0.7480. Should 0.7836 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7917 and 0.8013 respectively. In H4 chart rising wedge pattern breakout favors prospects of a bearish trend. Also to be noted bearish engulfing formation exerts the expectation of downtrend for the pair.