AUD/USD outlook for January 23-27
Aussie spiked to 0.7590 in the course of the past week mainly on the relative weakness of the US dollar. Janet Yellen was the main troublemaker. Her recent comments on the future of the Fed’s monetary policy sent the greenback lower on Friday. Australian employment report released on Tuesday was a mixed bag as it indicated a modest increase in the number of jobs created and, at the same time, a heightened unemployment rate. Upbeat China’s gross domestic product allowed Aussie to rise further.
Next week the US dollar will be a major mover of the AUD/USD currency pair as there won’t be any significant events and data releases from Australia. Monday’s morning will herald a new era for the USA as soon as Donald Trump gets into power and signs his first executive orders. This can send the US dollar lower. Trump’s effect should influence the pair through the whole week.
A number of fundamental factors that we’ve just specified may send Aussie higher towards 0.7660, 0.7650 (78.6 Fibo retracement level formed from the November 8 high) and 0.7780. On the downside, there are several supports located at 0.7500 (100-day MA), 0.7470 (the upper border of Ichimoku cloud), 0.7380 (near the 50-day MA) and 0.7273.