AUD/USD Bounces Off 100-Hour SMA to Retest 10-Week Highs

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The AUD/USD currency pair on Friday bounced off the 100-hour SMA to surge towards 0.6665 following the latest round of US economic data. The currency pair has been trading within a slightly ascending channel off a sharper rising wedge since the start of the month. 

The pair continues to trade closer to the overbought section of the 14-hour RSI in the 60-min chart. It is also now firmly pegged above the 100hour and the 200-hour SMA lines, which act as support.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in the US market compared to Australia. In the Asia-Pacific country, construction work done for Q1 beat the expectation of -1.5% with -1%. Private capital Expenditure also impressed with a change of -1.6% versus an expected change of -2.6%.

In the US, annualized GDP for Q1 came worse off with a change of -5% compared to an expected change of -4.8%. Initial jobless claims for the week ending May 22, also disappointed with 2.123M claims versus 2.1M expected. On the other hand, non-defense capital goods orders ex-aircraft outperformed the expectation of -10% with -5.8%. 

On Friday, the core personal consumption expenditure price index for April missed the (MoM) expectation of -0.3% with -0.4%. Personal spending also disappointed with -13.6% versus -12.6% while personal income impressed with 10.5% compared to an expectation of -6.5%. 

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

Technically, the AUD/USD currency pair appears to be trading closer to the trendline support following today’s rebound. This could trigger a short-term pullback in the pair. However, the 100-hour and 200-hour SMA will provide support for another rebound.

The bears will be targeting short-term pullback profits at around 0.6574 or lower at 0.6455. On the other hand, the bulls will look to extend the current gains towards 0.6745 or higher at 0.6857.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to have recently bounced off new multi-year lows of about 0.5510. The pair is now on recovery and has surged to trade at 0.6665. It is also closing in on overbought levels in the 14-day RSI.

The bears will be targeting long-term pullback profits at around 0.6394 or lower at 0.6040. On the other hand, the bulls will look to pounce at around 0.6951 or higher at 0.7310.

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