The AUDUSD rally was more due to the dollar weakness than strength in the Australian Dollar. Last week inability to produce a close above the 0.7500 big psychological number is indicating that sooner rather than later we can expect a retracement. To the downside, we can expect AUDUSD to find support at 0.7400 and 0.7365 intraday support levels. The stochastic indicator is showing bearish divergence which can slowdown the bulls. However, we can still expect a false break above 0.7525 swing high before any substantial selling pressure to be seen. The Australian economic calendar only has the Unemployment figures as major news but we have a lot of proxy event risks that can disturb market volatility. The US CPI figures followed by Fed’s Yellen speech are major risk event for all dollar pairs. The Australian dollar is also expected to be sensitive to the Chinese GDP figures which is expected to post a flat reading of 6.7% growth rate. On the January 20 we have the inauguration of the new President of the USA which as we saw by now anything related to Trump can have an impact on the markets so traders need to be nimble trading on that day. Previous AUDUSD Weekly Forex Forecast

AUDUSD Weekly Forex Forecast - 16th to 20th Jan 2017 - Bearish