On Friday, the AUD/USD currency pair bounced back from session lows around 0.7001 to trade around 0.7076 after the latest US data. The AUD/USD trades within a descending channel formation on the 60-minute chart. 

The currency pair continues to trade a few levels below the 100-hour moving average line, despite the rebound. As a result, the currency pair still has room to run before reaching the 14-hour RSI overbought levels.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair trades during a relatively busy period in both markets. On Friday, US durable goods orders for August outperformed expectations of -0.4%, with a change of 0%. On the other hand, US durable goods orders ex-transportation for the month fell short of the forecast change of 0.6%, with a change of 0.3%, while the nondefense capital goods orders ex-aircraft outshone the estimate of 0.5%, with a change of 1.6%.

On Thursday, the US initial jobless claims for last week came in better than expected, at 197k versus a forecast of 201k, down from the previous week’s claim count of 198k. Earlier in the week, the preliminary S&P Global Manufacturing PMI for September outperformed the expectation of 53.5, with a reading of 57. The preliminary S&P Global Services PMI for the period also outshone the forecast of 56, with a reading of 58.7.

In Australia, the seasonally adjusted employment change for August rose to 39.5k, up from the previous month’s equivalent of -15.9k, beating the forecast of 20k. The participation rate for the month also improved to 67.1, up from 66.9 in July, beating the expectation of 66.9. On the other hand, the unemployment rate for the period rose slightly to 4.6%, up from 4.5%, missing the forecast of 4.5%.

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

Technically, the AUD/USD currency pair trades within a descending channel formation on the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 0.7050 or higher, to 0.7078. On the other hand, the bears will look to pounce on pullbacks at about 0.7001 or lower, at 0.6972.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair has recently completed a downward breakout from an ascending channel formation. As a result, the 14-hour RSI is on the verge of entering oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 0.6922 or lower, to 0.6827. On the other hand, the bulls will look to pounce on rebounds at about 0.7138 or higher, at 0.7235.