The AUD/USD currency pair on Friday bounced off the 0.6690 level multiple times after establishing support. The currency pair appears to be trading within a descending channel formation following Thursday’s major pullback.
The currency pair has now dropped to trade a few levels below the 100-hour moving average line. However, Friday’s rebound prevented the currency pair from falling 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 US S&P Global Composite PMI for April beat the expected reading of 52.8 with a reading of 53.5.
On the other hand, the manufacturing PMI for the period beat the expectation of 49 with a reading of 50.4, while the Services PMI outshone the forecast of 51.5 with 53.7. Earlier in the week, the US building permits for March missed the expected (MoM) change of 1.45 million with a tally of 1.413 million, while housing starts for the period beat 1.4 million with 1.42 million.
In Australia, the preliminary S&P Global Manufacturing PMI for April missed the expected reading of 48.8 with a reading of 48.1. Earlier in the week, the National Australia Bank’s Business Confidence for Q1 missed the forecasted reading of 2 with a reading of -4.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair appears to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current run of declines toward 0.6675 or lower to 0.6659. On the other hand, the bulls will be targeting short-term profits at about 0.6707 or higher at 0.6723.
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 0.6742 or higher at 0.6798. On the other hand, the bears will look to pounce on pullbacks at about 0.6641 or lower at 0.6581.