The AUD/USD currency pair on Friday bounced off the key support at 0.6703 to trade at about 0.6710 following the latest round of data. The currency pair is trading within a sharply descending channel formation in the 60-min chart.

The pair has now plummeted to trade closer to the 100-hour moving average line. Friday’s slight rebound prevented the currency pair from descending into the oversold levels 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 preliminary Michigan consumer sentiment index for April outperformed the expected reading of 62 with a reading of 63. On the other hand, the US retail sales for March missed the expected (MoM) change of -0.4% with a change of -1%. The retail sales control group for the period also fell short of the forecasted change of 0.6% with a change of -0.3%, while the retail sales ex-autos missed the estimated change of -0.3% with a change of -0.8%. 

In Australia, the employment change for March outperformed the expected job count of 20k with a higher tally of 53k. On the other hand, the unemployment rate remained unchanged from February at 3.5%, beating the expected rate of 3.6%. The participation rate also steadied at 66.7% compared to a forecasted rate of 66.6%. However, consumer inflation expectations for April missed the expected rate of 5.3% with a rate of 4.6%.

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

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

Therefore, the bears will be looking to stretch the current pullback towards 0.6697 or lower to 0.6682. On the other hand, the bulls will be targeting rebound profits at about 0.6721 or higher at 0.6737.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting long-term profits at about 0.6801 or higher at 0.6901. On the other hand, the bears will look to pounce on profits at about 0.6630 or lower at 0.6530.