The AUD/USD currency pair on Friday spiked to complete an upward channel breakout after bottoming at about 0.6671. The currency pair now trades slightly above the descending channel formation in the 60-min chart.

However, the pair still remains several levels below the 100-hour moving average line after the rebound. The currency pair has, however, advanced to trade closer to 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 for August missed the expectation of 35k with a job count of 33.5k. On the other hand, the unemployment rate for the period edged higher to 3.5% up from 3.4% in July, missing the expectation of 3.4%. The Consumer Inflation Expectations for September also failed to match the forecast of 6.7% with a change of 5.4%, while the Westpac Consumer Confidence for September outperformed the forecast of -0.3% with a change of 3.9%.

In the US, the preliminary Michigan Consumer Sentiment Index for September missed the expected reading of 60 with a reading of 59.5 on Friday. On Thursday, US retail sales control group for August posted a change of 0% compared to an expectation of 0.5%, while general retail sales outperformed the forecast of 0% with a change of 0.3% (MoM). Earlier in the week, the producer price index for August outperformed expectations, while the CPI ex-food and energy also came in better than expected.

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

Technically, the AUD/USD currency pair seems to have recently completed an upward breakout from a descending channel formation in the 60-min chart. This indicates an attempt by the bulls to take control of the market in the short term.

Therefore, they will be targeting extended rebound profits at about 0.6743 or higher at 0.6764. On the other hand, the bears will look to pounce on profits at about 0.6696 or lower at 0.6671.

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 bears will be looking to extend the current declines toward 0.6632 or lower to 0.6528. On the other hand, the bulls will be targeting long-term profits at about 0.6829 or higher at 0.6938.