Second quarter inflation in Australia rose to 6.1%. RBA is expected to deliver a 50 bps rate hike. There is indecision at the 0.7 psychological level. The weekly AUD/USD forecast is bullish as the Reserve Bank of Australia is expected to respond to rising inflation with a 50bps rate hike. At the same time, if the US dollar continues falling, the pair might rally in the coming week. –Are you interested to learn more about low spread forex brokers? Check our detailed guide- The ups and downs of AUD/USD The pair closed the week higher after Australia’s inflation rose to 6.1%, which markets expect will push the RBA to raise interest rates further in August. “There are no two ways about it – inflation is red hot in Australia right now, as it is in many parts of the world, and the RBA will respond by raising the cash rate again at the August board meeting next week,” said Gareth Aird, head of economics at CBA. “Our central scenario for the RBA to raise the cash rate by 50 basis points [to 1.85%]at the August board meeting is unchanged,” he said. This move was also supported by the US dollar’s weakness, as investors saw a higher risk of recession and a possibly less hawkish Federal Reserve. Next week’s key events for AUD/USD Next week is packed with significant news releases from Australia and the United States. The Reserve Bank of Australia is expected to raise interest rates by 50 basis points as it tries to tame rising inflation. “Inflation clearly is running hot. This should keep the pressure on the RBA to move quickly towards a more neutral policy setting,” said Taylor Nugent, an economist at NAB, who sees the RBA moving by 50 bps in August and September. Investors will also pay attention to the US jobs report, which might cause a lot of volatility. Get FREE Forex Signals Now! AUD/USD weekly technical outlook: The journey back above 0.70 Looking at the daily chart, we see the price trading above the 22-SMA, showing bulls are in control. The RSI is trading above 50, favoring bullish momentum. The price has made a doji candle showing indecision at the 0.7000 level. –Are you interested to learn more about forex bonuses? Check our detailed guide- The next big-bodied candle will show the final decision. A bullish candle will mean the price might retest 0.72661. A bearish candle could see the price retesting the 0.67200 level. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal AUD/USD Forecast share Read Next Robotics.Online Can Multiply Your Money Over Time With Up To 465% APY Gary McFarlane 6 months Second quarter inflation in Australia rose to 6.1%. RBA is expected to deliver a 50 bps rate hike. There is indecision at the 0.7 psychological level. The weekly AUD/USD forecast is bullish as the Reserve Bank of Australia is expected to respond to rising inflation with a 50bps rate hike. At the same time, if the US dollar continues falling, the pair might rally in the coming week. –Are you interested to learn more about low spread forex brokers? Check our detailed guide- The ups and downs of AUD/USD The pair closed the week higher after Australia's inflation rose to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.