Forex - AUD/USD weekly outlook: December 1 - 5

Investing.com - The Australian dollar ended Friday's session close to a four-year low against its U.S. counterpart, as sliding commodity prices weighed on growth-linked assets.

AUD/USD fell to 0.8477 on Wednesday, the pair's lowest since July 2010, before subsequently consolidating at 0.8503 by close of trade on Friday, down 0.46% for the day and 1.94% lower for the week.

The pair is likely to find support at 0.8477, the low from November 26, and resistance at 0.8614, the high from November 27.

Commodity prices suffered heavy losses as oil prices tumbled following Thursday’s decision by the Organization of the Petroleum Exporting Countries to keep production quotas unchanged, fuelling fears over a global supply glut.

London-traded Brent prices lost $2.43, or 3.35%, to settle at $70.15 a barrel on Friday, while New York-traded crude futures plummeted $7.54, or 10.23%, to close at $66.15 a barrel.

The US Dollar Index, which measures the greenback against a basket of six major currencies, was up 0.45% to 88.41 late Friday, not far from the four-year highs of 88.52 set earlier in the week.

AUD/USD has been under pressure in recent weeks amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.

In contrast, minutes of the Reserve Bank of Australia’s most recent meeting indicated that rates were likely to remain on hold for some time to come.

In the week ahead investors will be focusing on the outcome of a policy meeting of the Reserve Bank of Australia on Tuesday, which is to be followed by the U.S. jobs report for November on Friday.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, December 1

China is to release official data on manufacturing activity, as well as the HSBC manufacturing index. The Asian nation is Australia's largest trade partner.

In the U.S., the Institute of Supply Management is to release data on manufacturing activity.

Tuesday, December 2

Australia is to release data on building approvals and the current account.

Later in the day, the Reserve Bank of Australia is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.

Wednesday, December 3

Australia is to publish a report on GDP, the broadest indicator of economic activity and the leading indicator of economic growth.

The U.S. is to release the ADP report on private sector job creation, while the ISM is to publish a report on U.S. service sector activity.

Thursday, December 4

Australia is to publish data on retail sales and the trade balance, the difference in value between imports and exports.

The U.S. is to release the weekly report on initial jobless claims.

Friday, December 5

The U.S. is to round up the week with the closely watched government report on nonfarm payrolls, the unemployment rate and average earnings, as well as a report on factory orders.