AUD/USD posted modest gains last week, closing at 0.7276. This week’s key event is Retail Sales. Here is an outlook on the major market-movers and an updated technical analysis for AUD/USD. In the US, it was a busy start to the New Year. The ISM Manufacturing PMI improved and beat expectations. Employment numbers were a mix, as wages edged higher but NFP payrolls fell considerably. The Fed meeting minutes were cautious, as policymakers wait to see how the economy will respond to Donald Trump’s economic policies. Australia surprised the markets with a trade surplus, the first since March 2014. [do action=”autoupdate” tag=”AUDUSDUpdate”/]AUD/USD daily graph with support and resistance lines on it. Click to enlarge: AIG Construction Index: Sunday, 22:30. The construction indicator has posted two straight readings below the 50-point level, pointing to decline in the construction sector. Will we see an improvement in the December release? Building Approvals: Monday, 00:30. Building Approvals tends to show sharp fluctuations, making accurate forecasts a tricky task. In October, the indicator plunged 12.6%, well of the forecast of 2.2% gain. The November estimate stands at 4.6%. Retail Sales: Tuesday, 00:30. Retail Sales is the key event of the week. In October, the indicator edged lower to 0.5%, beating the forecast of 0.3%. The downward trend is expected to continue in November, with an estimate of 0.4%. Chinese CPI: Tuesday, 1:30. Key Chinese indicators can have a considerable impact on the Australian dollar, so Chinese events should be treated as market-movers. The indicator improved to 2.3% in November, edging above the forecast of 2.2%. The estimate for December remains at 2.2%. Chinese Trade Balance: Friday, Tentative. China’s trade surplus dropped to $298 million in November, short of the forecast of $307 million. The markets are expecting a strong rebound in the December report, with an estimate of $345 billion. AUD/USD Technical Analysis AUD/USD opened the week at 0.7214 and quickly touched a low of 0.7166, as support held firm at 0.7148 (discussed last week). The pair then reversed directions and climbed to a high of 0.7357, testing resistance at 0.7223 . AUD/USD closed the week at 0.7276. Live chart of AUD/USD: AUDUSD chart by TradingView Technical lines from top to bottom: We start with resistance at 0.7630. 0.7513 was a cushion in April 2015. 0.7427 is next. 0.7311 marked a low point in November. 0.7223 is next. 0.7148 held firm as AUD/USD lost ground early in the week before rebounding. 0.7015 is protecting the symbolic 0.70 level. 0.6918 was last tested in late January. 0.6827 is the final support line for now. I am bearish on AUD/USD The US economy enters 2017 in excellent shape, and monetary and fiscal divergence is bullish for the greenback ahead of the Trump inauguration. Our latest podcast is titled Is the FED Data or Donald Dependent? Follow us on Sticher or iTunes Safe trading! Further reading: For a broad view of all the week’s major events worldwide, read the USD outlook. For EUR/USD, check out the Euro to Dollar forecast. For the Japanese yen, read the USD/JPY forecast. For GBP/USD (cable), look into the British Pound forecast. For the Canadian dollar (loonie), check out the Canadian dollar forecast. For the kiwi, see the NZD/USD forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher AUD/USD ForecastMinorsWeekly Forex Forecasts share Read Next NZD/USD Forecast Jan. 9-13 Yohay Elam 6 years AUD/USD posted modest gains last week, closing at 0.7276. This week's key event is Retail Sales. Here is an outlook on the major market-movers and an updated technical analysis for AUD/USD. In the US, it was a busy start to the New Year. The ISM Manufacturing PMI improved and beat expectations. Employment numbers were a mix, as wages edged higher but NFP payrolls fell considerably. The Fed meeting minutes were cautious, as policymakers wait to see how the economy will respond to Donald Trump's economic policies. Australia surprised the markets with a trade surplus, the first since March 2014. [do… 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.