Near Term Outlook Remains Neutral Despite Friday's Rise

A weaker greenback on Friday saw AUD/USD rise to 0.7381 before pulling back slightly into the close. USD was under pressure after data showed that consumer confidence fell to the lowest level since the start of the pandemic. AUD/USD last trading down 1 pip at 0.7369.

• From a technical perspective AUD/USD finished the week toward the upper-end of the range, but the near-term outlook remains broadly neutral. Bulls need further progress from here, to cement any near-term recovery, with 0.7416 the first notable level of resistance ahead of 0.7429, the Jul 19 high. For the bearish outlook to firm, markets need to slip through this week's low of 0.7316 ahead of the 0.7290 bear trigger.
• Elsewhere, Woodside Petroleum is said to be in advanced talks to purchase BHP Group's petroleum division for approximately AUD 20bn, while a consortium led by IFM is said to have raised its bid for Sydney Airport to $22bn.
• There is a distinct lack of local calendar risk on Monday, which will leave the local COVID situation (with another record number of daily cases outlined in Sydney on Saturday, resulting in tighter restrictions/monitoring) and broader headline flow at the fore.