The AUD/USD currency pair on Friday spiked to complete an upward channel breakout after bouncing off the key support at 0.6245. The currency pair has now advanced to trade closer to the 0.6400 key level.
The currency pair also appears to have completed an upward crossover of the 100-hour moving average line in the 60-min chart. The pair has since climbed to trade deep into the overbought conditions of the 14-hour RSI.
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 Thursday, the Australian employment change of September missed the expectation of 25k with 0.9k. On the other hand, National Austral Bank’s Business Confidence for Q3 outshone the (QoQ) expectation of 7 with a reading of 9, while the unemployment rate for September matched the forecast rate of 3.5%, unchanged from the previous month’s rate of 3.5%.
In the US, the initial jobless claims for the week ending October 14 outperformed the forecast of 230k with a lower tally of 214k. On the other hand, the continuing claims for the preceding week missed the forecasted tally of 1.375 million with a higher claim count of 1.385 million. Elsewhere, the Philadelphia Fed Manufacturing Survey for October missed the forecast of -5 with -8.7.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair seems to have completed an upward breakout from a sideways channel formation in the 60-min chart. This indicates an abrupt spike in bullish bias in the market sentiment.
Therefore, the bulls will be looking to extend the current gains toward 0.6430 or higher to 0.6494. On the other hand, the bears will be targeting profits at about 0.6320 or lower at 0.6245.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair appears to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current declines toward 0.6175 or lower to 0.5985. On the other hand, the bulls will be targeting long-term profits at about 0.6555 or higher at 0.6735.