On Thursday, the AUD/USD currency pair bounced back from the session lows of about 0.7016 to trade at about 0.7036. The currency pair trades within an ascending channel formation on the 60-minute chart.

Thursday’s rebound helped the pair advance above the 100-hour moving average line. However, the currency pair still has plenty of room left to run before reaching 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. In Australia, the consumer price index for September accelerated to 0.8% (MoM), up from 0.4% in August, and ahead of the forecast rate of 0.7%. The (YoY) equivalent also rose to 4.3%, up from 4%, slightly above the forecast of 4.2%. 

The trimmed CPI for the period rose slightly to 0.3% (MoM), up from 0.2%, as expected. The (YoY) equivalent also edged higher to 3.6%, up from 3.5%. Traders will be waiting for the Australian producer price index data for September on Friday.

In the US, personal income for September missed the forecast (MoM) change of 0.3%, with a change of 0.2%. Personal spending for the month also fell short of 0.6%, with a change of 0.5%. The personal consumption expenditures price index for September matched the (MoM) and (YoY) forecasts of 0.5% and 3.6%, respectively, up from 0.3% and 3.4% in August.

The preliminary annualized US gross domestic product for Q3outperformed the forecast change of 3.2%, with a change of 3.4%. The preliminary gross domestic product price index for the period fell short of 3.5%, with a change of 2.2%. On the other hand, the initial jobless claims for last week fell slightly from 195k to 194k, below the forecast claim count of 199k.

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

Technically, the AUD/USD currency pair trades within an ascending channel formation on the 60-minute chart. The 14-hour RSI has also bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 0.7054 or higher, up to 0.7069. On the other hand, the bears will look to pounce on profits at about 0.7016 or lower, down to 0.6999.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair has recently completed an upward breakout from a descending channel formation. The 14-day RSI also bounced back to avoid entering oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 0.7102 or higher, up to 0.7174. On the other hand, the bears will look to pounce on pullbacks at about 0.6966 or lower, down to 0.6897.