Fundamental view:

The AUD/USD pair has reached this week 0.7413 on Monday, a level that was last seen on August 2018. The greenback, however, began recovering afterwards, partially due to its extreme oversold conditions and partially due to an improved market mood. Australia Company Operating Profits on 31^st August and Australia Building Approvals monthly report on 1^st Sept created a bullish environment whereas Australia GDP quarterly report on 2^nd Sept, Australia trade balance on 3^rd Sept favored bearish environment for the pair.

The market will be volatile in the upcoming week we expect the pair to show a pullback in the upcoming week.

The major economic events deciding the movement of the pair in the next week are NAB Business Confidence, US IBD/TIPP Economic Optimism at Sep 08, Australia Westpac Consumer Sentiment at Sep 09, Unemployment Claims, Crude Oil Inventories at Sep 10, and US Core CPI monthly report at Sep 11.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.65% higher than the previous week. Maintaining high at 0.7413 and low at 0.7222 showed a movement of 192 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 0.7200 may open a clean path towards 0.7115 and may take a way down to 0.7008. Should 0.7391 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7498 and 0.7583 respectively. In H4 chart Inverted cup and handle pattern favors prospects of a bearish trend. Also to be noted shooting star formation exerts the expectation of downtrend for the pair.