The Australian dollarextended it’s weekly losses on Friday without signs of a reprieve stemming from a stronger U.S. dollar and weaker than expected Australian labor data. Next week we have Australian PMI data which has been on the decline on both manufacturing and services fronts as high inflation and a slowdown in global demand hampered both segments, so it will be interesting to see whether the downward trend continues or not. Later in next week, the Jackson Hole Symposium will dominate markets as to the directional bias of the Federal Reserve after an underwhelming FOMC Minutes release earlier this week.
AUD/USD price action is heading for a key inflection point as bears test the Relative Strength Index (RSI) trendline support . A break below could spur further Aussie weakness coinciding with a potential bearish crossover between the 20-day EMA and 50-day EMA respectively.