Forex - AUD/USD weekly outlook: November 17 - 21

Investing.com - The Australian dollar bounced back from earlier losses to settle at a two-week high against its U.S. counterpart on Friday, as a round of profit-taking sent the greenback sliding.

AUD/USD hit a daily low of 0.8649 on Friday, before turning 0.48% higher to subsequently consolidate at 0.8759 by close of trade, the highest since October 31. The pair rose 1.43% on the week.

The pair is likely to find support at 0.8649, Friday's low, and resistance at 0.8843, the high from October 31.

The U.S. dollar was boosted after the Commerce Department reported that U.S. retail sales rose 0.3% in October, ahead of forecasts for a 0.2% increase.

The greenback trimmed gains after separate data showed that U.S. inflation expectations fell in an otherwise upbeat report on consumer confidence for this month.

The preliminary reading of the University of Michigan’s consumer sentiment index rose to a seven year high of 89.4, better than forecasts of 87.5 and up from October’s reading of 86.9.

However, the report also showed that consumers expected annual inflation of 2.6% this year, down from expectations for inflation of 2.9% in October.

The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was down 0.25% to 87.61 in late trade, not far from the more than four-year highs of 88.36 hit earlier in the session.

In the week ahead, investors will be focusing on Wednesday’s minutes of the Federal Reserve’s October meeting and Thursday’s report on the U.S. consumer price index.

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, November 17

The U.S. is to release a report on manufacturing activity in the New York region, as well as data on industrial production.

Tuesday, November 18

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.

Separately, RBA Governor Glenn Stevens is to speak at an event in Melbourne; his comments will be closely watched.

The U.S. is to release data on producer price inflation.

Wednesday, November 19

The U.S. is to release data on building permits and housing starts.

Later Wednesday, the Federal Reserve is to publish the minutes of its October meeting.

Thursday, November 20

The U.S. is to release data on initial jobless claims, consumer prices, existing homes sales and manufacturing activity in the Philadelphia region.