The AUD/USD currency pair on Friday bounced off the trendline support at about 0.6680  to trade above 0.6700 before pulling back later to 0.6684. The currency pair appears to be trading within a bearish triangle formation in the 60-min chart.

The pair has now plummeted to trade several levels below the 100-hour moving average line. However, Friday’s slight rebound helped the currency pair to recover from 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 Thursday, the Australian unemployment rate for November remained unchanged from October at 3.4% in line with expectations. On the other hand, the seasonally-adjusted employment change for the month outperformed the forecast of 19k with a tally of 64k. Elsewhere, the consumer inflation expectations for December fell to 5.2% down from 6% in the previous period, missing the expectation of 5.7%.

In the US, the Federal Reserve raised the Funds Rate by 50 basis points to 4.5% in line with expectations. However, retail sales and the retail sales control group numbers for November missed the expectations of -0.1% and 0.3%, respectively with -0.6% (MoM) and -0.2%. The retail sales ex-autos also came short of 0.2% with a change of -0.2% (MoM). On Friday, the preliminary S&P Global Manufacturing and Services PMIs for December missed the forecasts of 47.7 and 46.8, respectively with 46.2 and 44.4.

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

Technically, the AUD/USD currency pair appears to be trading within a bearish triangle formation in the 60-min chart. This indicates that the market is experiencing a decaying bullish momentum in the short term.

Therefore, the bulls will be targeting short-term profits at about 0.6708 or higher at 0.6735. On the other hand, the bears will look to pounce on profits at about 0.6665 or lower at 0.6641.

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 looking to extend the current rally towards 0.6787 or higher to 0.6900. On the other hand, the bears will be targeting potential pullbacks at about 0.6585 or lower at 0.6483.