The AUD/USD currency pair on Friday pulled back off session highs of about 0.6968 to trade at about 0.6866 before bouncing back late on. The currency pair seems to be trading within a gently descending channel formation in the 60-min chart.
The pair remains below the 100-hour moving average line despite Friday’s late rebound. However, the currency pair managed to recover from the oversold conditions of the 14-hour RSI to return to the normal trading zone.
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 department of labour statistics reported 528k jobs for July, surpassing the market exp[ectation of 250k. In addition, the unemployment rate edged lower to 3.5% from 3.6% beating the average estimate of 3.6%. Elsewhere, the average hourly wage for the period grew by a whopping 5.2% from the same month a year ago, whilst also registering a 0.5% growth from the previous month. The market had forecasted growth rates of 4.9% and 0.3%, respectively.
In Australia, the trade balance for June outperformed the expectation of 14 billion with 17.67 billion, while exports and imports reported growths of 5.1% and 0.7% (MoM), respectively compared to the previous reading of 9.5% and 5.8%. Earlier in the week, retail sales for Q2 grew by 1.4% (QoQ) compared to the previous period’s growth of 1%, while the S&P Global Services PMI July beat the expectation of 50.4 with 50.9.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair seems to be trading within a gently descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current declines toward 0.6886 or lower to 0.6866. On the other hand, the bulls will be targeting short-term profits at about 0.6936 or higher at 0.6968.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bulls will be targeting potential channel breakout profits at about 0.7025, or higher at 0.7164. On the other hand, the bears will look to pounce on profits at about 0.6810 or lower at 0.6680.