**AUD/USD Weekly Report Overview and Analysis**
*Based on analysis by ActionForex.com, with supplemental updates and insights from other recent forex sources.*
## Market Overview
The Australian Dollar (AUD) continued its weaker trend against the US Dollar (USD) in the recent week, marking further declines that have placed the pair near significant technical and psychological support areas. Heightened concerns over global economic growth, a resilient US economy, and shifting market risk appetite have reaffirmed the downside bias for AUD/USD. The following report provides a thorough weekly analysis of AUD/USD’s price action, technical landscape, and the broader macroeconomic context affecting this forex pair.
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## Weekly Price Action Summary
– **Opening Level:** The pair opened the week around 0.6680.
– **Weekly Range:** Movements fluctuated between a high near 0.6685 and a low by 0.6550.
– **Closing Position:** AUD/USD ended the week close to the lower end of its range, around 0.6560.
Throughout the week, multiple attempts at recovery were swiftly capped by selling pressure, a reflection of prevailing bearish sentiment. The pair’s persistent inability to stage a sustainable rebound points to both technical weaknesses and fundamental headwinds.
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## Key Drivers Behind AUD/USD Movements
### 1. **US Dollar Strength**
– The US Dollar Index (DXY) rebounded during the week as economic releases from the US indicated robust activity, especially in employment and consumption.
– Hawkish comments by several Federal Reserve officials about potential delays in US rate cuts supported further USD appreciation.
– Money markets reduced their expectations for imminent Fed easing, directly influencing AUD/USD’s downward drift.
### 2. **Australian Economic Indicators**
– Recent data including retail sales and employment figures underwhelmed, signaling softer domestic momentum.
– The Reserve Bank of Australia (RBA) maintained a cautious stance, with market participants now pricing in a lower probability of near-term tightening.
– Downside economic surprises limited AUD’s ability to mount any durable relief rallies.
### 3. **Risk Sentiment and China’s Outlook**
– The Australian Dollar is particularly sensitive to global risk sentiment and developments in China, Australia’s largest trading partner.
– Ongoing concerns over China’s property sector and slower-than-expected growth exerted additional drag on AUD.
– Equity and commodity markets exhibited renewed volatility, further reducing demand for risk-linked assets like the Aussie.
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## Technical Outlook and Chart Analysis
### 1. **Trend Structure and Moving Averages**
– AUD/USD decisively broke below its 55-day Exponential Moving Average (EMA), ending the week well below this indicator.
– This marks a continuation of the medium-term bearish trend established in recent sessions.
– The pair is now trading at levels last seen several months ago, threatening to transition from a broad range phase to an outright downtrend.
### 2. **Support and Resistance Levels**
– **Major Resistance:** The 0.6685-0.
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