AUD/USD Weekly Fundamental Analysis – Week of May 23, 2016

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Published: May 21, 2016, 07:25 UTC

The AUD/USD dipped this week as the greenback soared this week. The Aussie is trading at 0.7223. There have been some bullish signs, or perhaps at the

AUD/USD Weekly Fundamental Analysis – Week of May 23, 2016

The AUD/USD dipped this week as the greenback soared this week. The Aussie is trading at 0.7223. There have been some bullish signs, or perhaps at the least signs of exhaustion in this trend. A channel down containing price from this week highs has seen an upside break, albeit with low momentum. The larger technical pattern can be found on the daily chart, where analysts see yesterday’s price action close to form a doji. The pattern is not necessarily bullish as it was posted below the weeks support level, but does indicate a pause in the trend at the least, and provides some protection to the downside in today’s session.

It is likely to see the pair consolidate within this newly found range to close out the week with 0.7242 as strong upside resistance and support ahead of yesterday’s 0.7175 lows. Markets will be anxiously awaiting to hear if RBA Gov Stevens will provide further direction on monetary policy in his scheduled speech on Monday. Stevens will be speaking at the Trans-Tasman Business Circle boardroom briefing in Sydney.

Investors were waiting to see if currency issues will be discussed at a meeting of finance chiefs from the Group of Seven leading industrialized nations in Japan on Friday and Saturday.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week:


	Cur.	Event	Actual	Forecast	Previous
Monday, May 23, 2016
		Canada – Victoria Day
Tuesday, May 24, 2016
	USD	New Home Sales (Apr)		523K	511K
Wednesday, May 25, 2016
	CAD	Interest Rate Decision		0.50%	0.50%
	USD	Crude Oil Inventories			1.310M
Thursday, May 26, 2016
	GBP	GDP (QoQ) (Q1)		0.4%	0.4%
	GBP	GDP (YoY) (Q1)		2.1%	2.1%
	USD	Core Durable Goods Orders (MoM) (Apr)		0.3%	-0.2%
	USD	Pending Home Sales (MoM) (Apr)		0.6%	1.4%
Friday, May 27, 2016
	USD	GDP (QoQ) (Q1)		0.9%	0.5%