The AUD/USD currency pair on Friday extended declines before finding support at about 0.6640. The currency pair appears to be trading 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 descended to trade in 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 missed the expected reading of 63 with a reading of 57.7. On Thursday, the initial jobless claims for the week ending May 5 missed the expected claim count of 245k with a tally of 264k, while the continuing claims outperformed the expected tally of 1.82 million with a claim count of 1.813 million.
Elsewhere, the producer price index ex-food and energy for April missed the estimated (YoY) change of 3.3% with a change of 3.2%. The consumer price index ex-food and energy matched both the (YoY) and (MoM) estimates on Wednesday.
In Australia, consumer inflation expectations for May matched the expected change of 5%. Earlier in the week, retail sales for Q1 missed the (QoQ) forecast of -0.4% with a change of -0.6%, while building permits for March fell by -0.1% (MoM) compared to a growth rate of 3.9% in the previous month.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair appears to be training 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 declines toward 0.6614 or lower to 0.6584. On the other hand, the bulls will be targeting short-term profits at about 0.6671 or higher at 0.6698.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair seems to be trading within a sideways channel formation. This indicates a lack of a clear long-term directional bias in the market sentiment.
Therefore, the bears will be targeting extended pullback profits at about 0.6466 or lower at 0.6289. On the other hand, the bulls will look to pounce on rebounds at about 0.6798 or higher at 0.6964.