On Friday, the AUD/USD currency pair bounced back from session lows of about 0.7100 to trade at about 0.7143. The currency pair trades within an ascending channel formation on the 60-minute chart.

The pair has now advanced to trade a few levels above the 100-hour moving average line. As a result, the currency pair is on the verge of entering the overbought levels of the 14-hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair trades during a relatively busy period in both markets. On Thursday, the US initial jobless claims for last week came in better than expected, at 206k versus a forecast of 210k, down from the previous week’s equivalent of 212k. The Philadelphia Fed Manufacturing Survey for August also improved to 47.4, up from the previous month’s equivalent of 41.4, beating the forecasted reading of 25.

Earlier in the week, building permits for July came in stronger than expected, with 1.443 million versus a forecast of 1.37 million, up from the previous month’s equivalent of 1.374 million. On the other hand, housing starts for the period missed the expectation of 1.35 million, with a tally of 1.239 million, down from the preceding month’s equivalent of 1.415 million.

In Australia, the seasonally adjusted employment change for July fell to -15.8k, down from 80.2k in June, missing the forecasted tally of 15k. The unemployment rate for the month also rose slightly to 4.5%, up from 4.4%, missing the forecast of 4.4%, while the participation rate matched the expectation of 66.9%, down from 67% in June. 

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

Technically, the AUD/USD currency pair trades within an ascending channel formation in the 60-minute chart. The 14-hour RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to stretch the current rebound towards 0.7165 or higher to 0.7187. On the other hand, the bears will look to pounce on pullbacks at about 0.7123 or lower at 0.7100.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair also trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it moves closer to overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 0.7213 or higher to 0.7283. On the other hand, the bears will look to pounce on pullbacks at about 0.7069, or lower at 0.6991.