On Friday, the AUD/USD currency pair bounced back from the session lows to trade at about 0.7167 following Thursday’s pullback. The currency pair trades within a slightly ascending channel formation on the 60-minute chart.
The pair continues to trade a few levels below the 100-hour moving average line, despite the latest rebound. As a result, 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 the US market. In Australia, the consumer inflation expectations for September remained unchanged at 4.9%. On the other hand, Westpac consumer confidence for the month fell to -5.2%, down from the previous update of 6%.
In the US, the initial jobless claims for last week edged slightly lower to 206k, down from the previous week’s equivalent of 207k, but still higher than the forecast claim count of 205k. The producer price index for August matched the forecast (MoM) change of 0.4%. The (YoY) equivalent outshone the estimated change of 5.3%, with a change of 5.4%.
On the other hand, the producer price index ex-food and energy fell short of the forecast (MoM) change of 0.3%, with a change of 0.2%, while the (YoY) equivalent was in line with the estimate of 4.6%.
Looking forward, traders will be waiting for the US consumer price index data and the monthly budget statement for August, alongside the preliminary Michigan Consumer Sentiment Index for September later on Friday.
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 recently bounced back from oversold conditions.
Therefore, the bulls will look to extend the current rebound towards 0.7219 or higher, up to 0.7266. Meanwhile, bears will look to take profits at about 0.7119 or lower, down to 0.7069.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards 0.7042 or lower, down to 0.6923. On the other hand, the bulls will look to pounce on profits at about 0.7281 or higher, up to 0.7401.