Fundamental view:

Aussie fell in the last week and reached 0.70 level. The Australian dollar felt the heat of resurgent coronavirus cases in Europe and US, despite Australia managed to control the latest outbreak. Australian “victory” on COVID-19 is nothing to cheer. After over 110 days of lockdown in Victoria, the area reported no new cases for two days in a row. However, authorities are utterly cautious with scheduled reopenings. Not for nothing, the Reserve Bank of Australia anticipated more easing. 

US New Home Sales on 26th October favored bullish trend whereas US Core Durable Goods Orders monthly report on 27^th October and US Goods Trade Balance on 28^th October favored bearish environment for the pair.

The major economic events deciding the movement of the pair in the next week are US ISM Manufacturing PMI at Nov 02, RBA Interest Rate Decision at Nov 03, US ADP Nonfarm Employment Change, ISM Non-Manufacturing PMI at Nov 04, Fed Interest Rate Decision at Nov 05, RBA Monetary Policy Statement and US Nonfarm Payrolls at Nov 06.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.01% lower than the previous week. Maintaining high at 0.7157 and low at 0.7002 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 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 0.6967 may open a clean path towards 0.6907 and may take a way down to 0.6812. Should 0.7122 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7217 and 0.7277 respectively. In H4 chart flag pattern formation favors prospects of a bearish trend. Also to be noted hanging man candle formation exerts the expectation of downtrend for the pair.