The AUD/USD currency pair on Friday extended declines to trade below the 100-hour moving average line. The currency pair continues to trade within a descending channel formation in the 60-min chart.

The currency pair peaked at 0.6517 on Thursday before falling to bounce back off the 0.6392 level on Friday. The late rebound prevented the currency pair from falling into 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 the US market. On Friday, the Michigan Consumer Sentiment Index for October beat the expected reading of 59.8 with a reading of 59.9.

On the other hand, personal income for September outperformed the expectation of 0.2% with a change of 0.4% (MoM), while personal spending beat 0.4% with a change of 0.6%. Elsewhere, the core personal consumption expenditures price index for September missed the expected (YoY) change of 5.2% with a change of 5.1%, while the (MoM) equivalent was in line with expectations at 0.5%.

In Australia, the producer price index for Q3 outperformed the expected (QoQ) change of 1.5% with a change of 1.9%, while the (YoY) change was in line with expectations at 6.4%. Earlier in the week, the Australian CPI for Q3 beat the (QoQ) forecast of 1.5% with a change of 1.8%, while the (YoY) equivalent outshone 7% with a change of 7.3%. Elsewhere, The RBA trimmed mean CPI for the period outshone 1.5% with a change of 1.8%.

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

Technically, the AUD/USD currency pair appears to be trading within a gently descending channel formation in the 60-min chart. This indicates a slight short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to extend the current declines toward 0.6369 or lower to 0.6320. On the other hand, the bulls will be looking to pounce on potential rebound profits at about 0.6467 or higher at 0.6516.

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 targeting long-term profits at about 0.6286 or lower at 0.6172. On the other hand, the bulls will be targeting potential rebound profits at about 0.6555 or higher at 0.6667.