The AUD/USD currency pair on Friday pulled back off the session highs of about 0.6473 to trade at about 0.6446. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The pair has now fallen to trade closer to the 100-hour moving average line. However, the currency pair still seems to have more room left to run before reaching the oversold levels of the 14-hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in both markets. On Friday, the preliminary Michigan consumer sentiment index for September missed the expected reading of 69.1 with a reading of 67.7.

On the other hand, the preliminary UoM 5-year consumer inflation expectation for the month fell to 2.7% down from 3% in the previous update. On Thursday, the US retail sales for August beat the expected (MoM) change of 0.2% with a change of 0.6%, while the retail sales ex-autos outshone 0.4% with a change of 0.6%.

In Australia, the seasonally-adjusted employment change for August outperformed the expectation of 23k with a tally of 64.9k. The participation rate for the months also came in stronger than expected with 67% versus a forecast of 66.7%, while the unemployment rate was in line with the estimate of 3.7%, unchanged from July. Elsewhere, the Westpac consumer confidence for September posted a change of -1.5% compared to -0.4% in the previous update.

AUD/USD Technical Analysis (the 60-min Chart)

Technically, the AUD/USD currency pair appears to be trading within a descending channel formation in the 60-minute chart. The hourly MACD appears to have recently completed a downward crossover, supporting a bearish case.

Therefore, the bears will be targeting extended declines at about 0.6434 or lower at 0.6420. On the other hand, the bulls will look to pounce on profits at about 0.6460 or higher at 0.6473.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair seems to be about to complete an upward breakout from a descending channel formation. The daily MACD also seems to support the bullish case after rejecting a downward crossover.

Therefore, the bulls will be targeting extended rebounds at about 0.6522 or higher at 0.6611. On the other hand, the bears will look to pounce on profits at about 0.6374 or lower at 0.6276.