Fundamental view:

The AUD/USD pair has made little progress this week as investors struggled to maintain the optimism alive. Australia reported on Thursday a week without new coronavirus contagions, although a foreign visitor tested positive on Friday. The country reported a total of 28,755 contagions since the pandemic started, and 909 deaths linked to the virus. And on the other hand, In the US, the death toll has reached 420K after reporting over 25 million cases, although the change of government implies a fresh approach to the pandemic.

Australia Employment Change on 20^th January and Australia Commonwealth Bank Services PMI & Retail Sales monthly report on 21^st January created downtrend for the pair whereas Australia HIA New Home Sales on 19^th January and US Initial Jobless Claims 4-Week Average on 20^th January created uptrend for the pair. 

The major economic events deciding the movement of the pair in the next week are US CB Consumer Confidence Index at Jan 26, Australia CPI quarterly report, US Core Durable Goods Orders monthly report, Fed Interest Rate Decision at Jan 27, US GDP quarterly report, US Initial Jobless Claims at Jan 28, and Australia PPI quarterly report at Jan29.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.30% lower than the previous week. Maintaining high at 0.7782 and low at 0.7659 showed a movement of 123 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 solid breakout below 0.7654 may open a clean path towards 0.7595 and may take a way down to 0.7531. Should 0.7777 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7841 and 0.7901 respectively. In H4 chart Ascending Triangle downside breakout favors prospects of a bearish trend. Also to be noted shooting star formation exerts the expectation of downtrend for the pair.