On Friday, the AUD/USD currency pair later pulled back from the session highs of about 0.6973 to trade at about 0.6949. The currency pair also completed an upward breakout from a descending channel formation on the 60-minute chart.

The pair continues to trade slightly below the 100-hour moving average line after the pullback. Friday’s pullback prevented the currency pair from rallying into 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 Friday, the US jobs data for September missed the expectation of 90k, with a tally of 29k, down from the previous month’s revised figure of 133k. The unemployment rate for the month also missed the forecast rate of 4.1%, coming in at 4.2%, up from the previous month’s 4.0%. 

On the other hand, the average hourly wage growth for the period fell short of the forecast (MoM) and (YoY) changes of 0.3% and 3.3%, respectively, with changes of 0.1% and 3%. The US factory orders for August matched the expected (MoM) change of 0.1%.

On Thursday, the US ISM Manufacturing PMI for September missed the expected reading of 55, with a reading of 54.5, down from the previous month’s 54.6. On the other hand, the ISM Manufacturing Prices Paid for the period beat the expectation of 72.3, with a reading of 77.9, up from 71.1 in August. Elsewhere, the initial jobless claims for last week came in lower than expected, at 197k versus a forecast of 200k, down from the previous week’s claim count of 198k. 

In Australia, building permits for August missed the expected change of -0.9%, with a change of -6.1% (MoM). On the other hand, the consumer price index for August matched the (MoM) and (YoY) forecasts of 0.4% and 4%, respectively. The trimmed mean CPI for the period fell short of 0.3%, at 0.2% (MoM), while the (YoY) equivalent was in line with the estimate of 3.6%.

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

Technically, the AUD/USD currency pair has recently completed an upward breakout from a descending channel formation on the 60-minute chart. However, the 14-hour RSI has since pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 0.6923 or lower, to 0.6898. On the other hand, the bulls will look to pounce on profits at about 0.6973 or higher, at 0.6997.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within a sharply descending channel formation. The 14-day RSI also supports a long-term bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to pounce on extended pullbacks at about 0.6862 or lower, at 0.6755. On the other hand, the bulls will look to pounce on rebounds at about 0.7039 or higher, at 0.7136.