The AUD/USD currency pair on Thursday pulled back off the trendline support at about 0.6759 to trade at about 0.6702. The currency pair continues to trade within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the currency pair appears to be on the verge of entering 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 Thursday, the US initial jobless claims for the week ending December 29 outperformed the expected claim count of 216k with a significantly lower tally of 202k. The continuing claims for the preceding week also beat 1.882 million with a tally of 1.855 million. The ADP Employment Change for December exceeded the expected change of 115k with a change of 164k, while the S&P Global Composite PMI missed the estimate of 51 with a reading of 50.9. 

In Australia, the Judo Bank Services PMI for December missed the expectation of 47.6 with a reading of 47.1. The composite PMI for the period edged slightly lower to 46.9 down from 47.4 in the previous update. Earlier in the week, the Judo Bank Manufacturing PMI for December also fell slightly to 47.6 down from 47.8, while the RBA’s commodity index for the month edged higher to -10.7% up from -12.8%.

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 pair has now fallen to trade closer to the oversold levels of the 14-hour RSI.

Therefore, the bears will be looking to extend the current run of declines toward 0.6671 or lower to 0.6642. On the other hand, the bulls will look to pounce on profits at about 0.6728 or higher at 0.6759.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 0.6545 or lower at 0.6399. On the other hand, the bulls will be targeting long-term profits at about 0.6849 or higher at 0.6990.