Forex - AUD/USD weekly outlook: December 15 - 19

Investing.com - The Australian dollar ended close to the lowest level in more than four years against its U.S. counterpart on Friday, amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.

AUD/USD fell to 0.8213 on Thursday, the pair's lowest since June 2010, before subsequently consolidating at 0.8246 by close of trade on Friday, down 0.28% for the day and 0.78% lower for the week.

The pair is likely to find support at 0.8213, the low from December 11, and resistance at 0.8374, the high from December 11.

The preliminary reading of the University of Michigan's consumer sentiment index released Friday rose to 93.8, the highest level since January 2007 and ahead of forecasts of 89.7.

Consumer sentiment was boosted by the improving outlook for employment and wage growth and lower gasoline prices.

The data underpinned expectations for a hike in U.S. interest rates by the Federal Reserve next year.

Economic reports pointing to a slowdown in China also fuelled risk aversion.

Official data released Friday showed that industrial production in China rose 7.2% in November, missing expectations for an increase of 7.5% and slowing from a 7.7% gain in October.

The disappointing data added to fears that China will miss its annual growth target of 7.5% and boosted speculation that the government will need to roll out fresh stimulus measures to avert a sharper slowdown.

The Asian nation is Australia's largest trade partner.

Meanwhile, in Australia, data published Thursday showed that the number of employed people increased by 42,700 last month, beating expectations for a 12,400 rise.

The report also showed that Australia's unemployment rate ticked up to 6.3% in November from 6.2% the previous month, in line with expectations.

In the week ahead, investors will be awaiting the outcome of Wednesday’s Federal Reserve policy meeting amid speculation that policymakers could drop an assurance that interest rates will stay low for a "considerable time".

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Friday as there are no relevant events on this day.

Monday, December 15

The U.S. is to release reports on manufacturing activity in the New York region and industrial production.

Tuesday, December 16

The Reserve Bank of Australia is to publish the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective.

China is to publish the preliminary reading of its HSBC manufacturing index.

The U.S. is to publish reports on building permits and housing starts.

Wednesday, December 17

The U.S. is to release data on consumer inflation and the current account. Later Wednesday, the Federal Reserve is to publish its rate statement and economic projections for the next two years. Fed Chair Janet Yellen is to hold what will be a closely watched press conference.

Thursday, December 18

The U.S. is to release data on initial jobless claims and manufacturing activity in the Philadelphia region.