The AUD/USD currency pair on Friday bounced off the current 2-year lows to trade above the 0.6815 level after the latest round of US data. The currency pair seems to be trading within an ascending channel formation in the 60-min chart.
The pair still remains several levels below the 100-hour moving average line despite the sharp spike. Moreover, the currency pair is yet to rise close to the overbought conditions 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 the US market. On Friday, the US ISM Manufacturing PMI for June missed the expectation of 53 with 54.9. The ISM Manufacturing Prices Paid also came short of 81 with 78.5, while both the ISM New Orders Index and ISM Employment Index also came short of 54.2 and 50.2 with 49.2 and 47.3, respectively. Elsewhere, the S&P Global Manufacturing PMI outperformed the expectation of 52.4 with 52.7.
Earlier in the week, the initial jobless claims for last week missed 228k with a higher claim count of 231k, while the continuing claims for the preceding week also shot higher to 1.328 million versus an estimate of 1.31 million. In Australia RBA Commodity Index for June missed the (Yoy) expectation of 38.2% with 24.3%. Earlier in the week, the seasonally-adjusted retail sales for May beat 0.4% with a change of 0.9% (MoM).
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair seems to be trading within a sharply ascending channel formation in the 60-min chart. This indicates a sharp change in the market sentiment from bearish to bullish.
Therefore, the bulls will be targeting an extension of the current spike at about 0.6834, or higher at 0.6852. On the other hand, the bears will be targeting short-term profits at about 0.6800, or lower at 0.6783.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair appears to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current bearish run toward 0.6763 or lower to 0.6672. On the other hand, the bulls will be targeting long-term profits at about 0.6904, or higher at 0.6991.