Fundamental view:

AUD has rallied against greenback in the past week. Upbeat Australian employment data and a dovish US Federal Reserve triggered the bullish breakout. The American currency plunged on a risk-on mood and a dovish Fed, as speculative interest was optimistic over a Brexit deal and the US stimulus package. Both suffered delays and are still to be resolved, yet market players are confident they’ll be resolved in the upcoming days. Regarding Brexit, there are still substantial differences in fisheries, but negotiations will continue over the weekend. 

In the previous week, US Capacity Utilization Rate & US Industrial Production monthly report on 15^th December and US Building Permits on 17^th December created bearish atmosphere whereas US TIC Long-Term Purchases & US Flash Services PMI on 16^th December and Australia Employment Change & Unemployment Rate on 17^th December created bullish atmosphere for the pair.

The major economic events deciding the movement of the pair in the next week are Australia Retail Sales monthly report, US GDP quarterly report, US CB Consumer Confidence Index at Dec 22, RBA Private Sector Credit monthly report at Dec 23, US Core Durable Goods Orders monthly report, and US Initial Jobless Claims at Dec 24.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.89% higher than the previous week. Maintaining high at 0.7640 and low at 0.7507 showed a movement of 133 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 0.7671 may open a clean path towards 0.7721 and may take a way up to 0.7803. Should 0.7539 prove to be unreliable support, the AUDUSD may sink downwards 0.7457 and 0.7406 respectively. In H4 chart symmetrical triangle breakout favors prospects of a bullish trend. Also to be noted bullish hammer formation exerts the expectation of uptrend for the pair.