On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.6254 to trade at about 0.6213. The currency pair also completed a downward breakout from a descending channel formation.

The pair has now descended to trade several levels below the 100-hour moving average line. As a result, the currency pair is trading deep into the oversold 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 the U.S. market. On Thursday, the U.S. initial jobless claims for the week ending February 21 missed the expectation of 221k with claim count of 242k, up from 220k in the preceding week.

The durable goods orders for January came in stronger than expected with a change of 3.1% versus a forecast of 2%, while the durable goods orders ex-transportation missed the estimate of 0.3% with a change of 0%. Elsewhere, the nondefence capital goods orders ex-aircraft outshone the estimate of 0.3% with a change of 0.8%.

The preliminary annualised U.S. gross domestic product for Q4 matched the forecast of 2.5%, unchanged from the previous quarter. On the other hand, the preliminary gross domestic product price index for the quarter beat the expectation of 2.2% with a change of 2.4%.

On the other hand, the preliminary personal consumption expenditures prices for the quarter outshone 2.3% with 2.4%, while the equivalent for core personal consumption expenditures prices beat 2.5% with 2.7%. In Australia, private expenditure for Q4 missed 0.8% with -0.2%, while the monthly CPI for January fell short of 2.6% with 2.5% (YoY).

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

Technically, the AUD/USD currency pair extended downward movement to trade below the 100-hour moving average line. The 14-hour RSI also supports a bearish bias after entering oversold conditions.

Therefore, the bears will look to stretch the current downward movement towards 0.6171 or lower to 0.6122. On the other hand, the bulls will look to pounce on profits at about 0.6254 or higher at 0.6300.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair is about to complete a downward breakout from an ascending channel formation. The 14-day RSI also pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.6089 or lower to 0.5968. On the other hand, the bulls will look to pounce on profits at about 0.6340 or higher at 0.6456.