The AUD/USD currency pair on Friday extended declines toward the current 29-month lows of about 0.6365 after US data. The currency pair continues to trade within a descending channel formation in the 60-min chart.
The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair has moved closer to the oversold 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 Friday, the US jobs data for September came in stronger than expected with a job count of 263k compared to a forecast of 250k. In addition, the unemployment rate edged lower to 3.5% down from 3.7% in August, beating the expectation of 3.7%.
The labour force participation rate also outshone the 62.2% forecast with a slightly better rate of 62.3%, while the average hourly wage growth missed the expectation of 5.1% with a (YoY) change of 5%. Earlier in the week, the ADP employment change also beat 200k with a tally of 208k.
In Australia, Trade Balance for August missed the expectation of 10,500 million with 8,324 million (MoM). Imports grew by 4.5% (MoM), down from 5.2% in the previous month, while exports flipped a 9% decline in the preceding month, posting a growth rate of 2.6%. Earlier in the week, the S&P Global Services PMI for September beat the forecast of 50.4 with a reading of 50.6.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair seems to be trading within a descending channel formation in the 60-min chart. This indicates a significant downward pressure in the market sentiment.
Therefore, the bears will be looking to extend the current run of declines toward 0.6296 or lower to 0.6232. On the other hand, the bulls will be targeting potential rebound profits at about 0.6428 or higher at 0.6493.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair seems to be trading within a gently descending channel formation. This indicates a slight long-term bearish bias in the market sentiment.
Therefore, the bears will be targeting long-term profits at about 0.6131 or lower at 0.5852. On the other hand, the bulls will be looking to pounce on profits at about 0.6633 or higher at 0.6904.