The AUD/USD currency pair on Friday bounced off the trendline support at 0.7090 to trade above 0.7100 after the latest US data. The currency pair appears to be trading within a gently ascending channel formation in the 60-min chart.
The pair has now rallied to trade several levels above the 100-hour moving average line. However, the currency pair appears to be about to pull back amid the trendline resistance, which also prevented it from advancing toward overbought conditions.
AUD/USD Fundamentals Overview
From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in both markets. On Friday, the preliminary US consumer sentiment index for August outperformed the expected reading of 52.5 with a reading of 55.1. On Thursday, the initial jobless claims for last week beat the expectation of 263k with a lower claim count of 262k. On the other hand, the continuing claims for the preceding week came short of the forecasted claim count of 1.407 million with a higher tally of 1.428 million. The producer price index ex-food and energy for July matched the expectation of 7.6% (YoY).
Earlier in the week, the consumer price index ex-food and energy for July missed the forecast of 0.5% (MoM) with a change of 0.3%. The (YoY) equivalent also failed to match the forecast of 6.1% with a change of 5.9%. The General CPI for the period missed on both the (MoM) and (YoY) basis.
In Australia, consumer inflation expectations for August came in at 5.9% down from the previous reading of 6.3%, while the Westpac consumer confidence for the period missed the expectation of 0.6% with -3%.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair seems to be trading within a gently ascending channel formation in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to ride the current trend by targeting profits at about 0.7146 or higher at 0.7174. On the other hand, the bears will look to pounce on profits at about 0.7093 or lower at 0.7063.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair seems to be about to complete a descending XABCD double-bottom reversal pattern formation. This indicates an attempt by the bulls to take long-term control of the currency pair.
Therefore, they will be looking to extend the current wave of gains towards 0.7267 or higher to 0.7381. On the other hand, the bears will be targeting long-term profits at about 0.6992, or lower at 0.6854.