Fundamental view:

Australian data showed a uptrend in the beginning of the week later the trend became favorable to the American dollar supported by the Inflation expectation and employment data. Federal Reserve has launched its bond program taper at previous Wednesday’s meeting with a $15 billion reduction in monthly purchases, only November and December were spoken for in the FOMC statement. On the other hand, The RBA will publish the Minutes of its latest meeting on Tuesday, while Governor Philip Lowe will offer a speech.

Australia Employment Change on 11^th November and Michigan Consumer Sentiment on 12^th November created uptrend whereas US CPI report and Initial Jobless claim Federal Budget Balance on 10^th November Favored downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are RBA Governor Lowe Speech, US Retail Sales monthly report, Fed Industrial Production monthly report at Nov 16, Australia Wage Price Index quarterly report, US EIA Crude Oil Stocks Change at Nov 17, Initial Jobless Claims at Nov 18 and Fed Governor Waller Speech at Nov 19.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 1.40% lower than the previous week. Maintaining high at 0.7431 and low at 0.7276 showed a movement of 155 pips.

In the upcoming week we expect AUD/USD to show a bearish trend.  The currency pair is trading below the 100 Simple Moving Average and the MACD trades to the downside. A firm breakout below 0.7260 may led to the fall of 0.7191 and then may take a way down to 0.7105. Should 0.7415 prove to be unreliable resistance, the AUDUSD may raise upwards to 0.7501 and 0.7570 respectively. In H4 chart symmetrical triangle breakout favors prospects of a bearish trend. Bearish harami formation exerts the expectation of downtrend for the pair.