On Friday, the AUD/USD currency pair bounced from the session lows of about 0.7182 to trade at about 0.7204. The currency pair trades within an ascending channel formation in the 60-minute chart. 

The latest rally has pushed the pair a few levels above the 100-hour moving average line. As a result, the currency pair is on the verge of entering 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 March rose to 4.6% (YoY), up from 3.7% in February, missing the forecast of 4.7%. The (MoM) equivalent also improved to 1.1%, up from 0%. Trimmed CPI for the month edged slightly higher to 0.3% (MoM) compared to 0.2% in February. The (YoY) equivalent came in at 3.3%, the same as the previous period.

In the US, the ISM Manufacturing PMI for April missed the expectation of 53, with a reading of 52.7, unchanged from March. The ISM Manufacturing Employment Index also fell short of 49, with a reading of 46.4, down from 48.7, while the ISM Manufacturing Prices Paid beat 80, with a reading of 84.6, up from 78.3. 

Earlier in the week, the Chicago Purchasing Managers’ Index for April fell to 49.2, down from 52.8, missing the forecasted reading of 53. On the other hand, personal income for March outperformed the expected (MoM) change of 0.3%, with a change of 0.6%.

Personal spending for the period matched the forecasted change of 0.9%. Elsewhere, the US initial jobless claims for last week came in lower than expected, at 189k versus a forecast of 215k, down from the previous week’s equivalent of 215k.

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

Technically, the AUD/USD currency pair trades within an ascending channel formation in the 60-minute chart. The 14-hour RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to pound on extended gains at about 0.7226 or higher at 0.7249. On the other hand, the bears will look to pounce on pullbacks at about 0.7182 or lower at 0.7161.

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 extend the latest pullback towards 0.7096 or lower to 0.6984. On the other hand, the bulls will look to pounce on profits at about 0.7298 or higher at 0.7406.