The Australian dollar recovered from the previous week losses against the US dollar. At the time of writing, the currency pair trades above 0.7230. Last week was typically the most volatile week for the Aussie traders, the Australian dollar plunged to a more than a 10-month low of 0.7106 on Friday.
The recent sell-off driven by the new wave of coronavirus infections in Australia triggered fresh restrictions and lockdowns. The coronavirus woes not only dragged down the AUD, but the other factors are also stronger US dollar and geopolitical tensions.
Moving ahead to the mid of the week, the economic data is limited to retail sales figures on Friday and the Federal Reserve’s symposium in Jackson Hole later in the week in which Fed Chair Powell is expected to provide details on the tapering timeline. On the other hand, the AUD traders have become increasingly concerned about Australia’s economic health going forward especially in New South Wales, where infections have climbed to record highs of more than 800 a day.
AUD/USD weekly technical outlook
Technically, the overall movement has remained bullish so far this week. In the coming days, if the bullish momentum continues the next upside levels to watch 0.7270 then 0.7300. On the downside, any meaningful pullback now seems to find some support near the 0.7180 zones, below which the slide could further get extended towards the 0.7140/00 region.