WEEKLY CURRENCY OUTLOOK

• No AU high-impact data, but some US data, which is unlikely to move markets substantially.
• Starting to see a potential rebound in the Aussie, end of the downtrend, consolidation phase.
• Expecting the AUDUSD to range between 0.6340 and 0.6500 this week on technical analysis.

• We still expect the AUDUSD to take a breather this week post the strong selling pressure last month.
• The US economy is outperforming the rest of the world, which is positive for the USD (given its safe haven status).
• The key event to watch for this week is FOMC Chair Powell’s speech & Jackson Hole (albeit on the weekend).
• The speech can be potentially dovish, which is a positive sign for rate cuts pricing given inflation is cooling significantly, ultimately weighing on the USD.
• We anticipate the AUD/USD will be in consolidation this week, taking a breather from last month’s price action before determining the next move in trend.
• Weakness in China’s property sector continues to weigh heavily on the AUD, especially with weakening commodity prices.
• Talks about the Chinese stimulus package remains to be key for a potential turnaround in the AUD, which is commodity sensitive.