AUD/USD Plunges to New Weekly Lows to Trade at About 0.6493

The AUD/USD currency pair on Wednesday pulled back off the session highs of about 0.6545 to trade at about 0.6493. The currency pair appears to be trading within a sharply descending channel formation in the 60-minute chart.

The pair has now fallen to trade several levels below the 100-hour moving average line. As a result, the currency pair has plummeted 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 Wednesday, the Australian monthly consumer price index for January remained steady at 3.4% slightly lower than the expectation of 3.5%.

Construction work done for Q4 also edged lower to 0.7% down from 1.4% in the preceding period, falling short of the forecasted change of 0.8%. Traders will be looking forward to Thursday’s private sector credit and retail sales data for January.

In the US, the preliminary annualised gross domestic product for Q4 missed the expectation of 3.3% with a change of 3.2%. On the other hand, the preliminary gross domestic price index for the period outshone the forecast of 1.5% with a change of 1.7%.

Elsewhere, the preliminary personal consumption expenditures prices for Q4 beat the (QoQ) expectation of 1.7% with a change of 1.8%. The preliminary core personal consumption expenditures prices also exceeded the (QoQ) estimate of 2% with a change of 2.1%.

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-minute chart. The 14-hour RSI also seems to support a short-term bearish bias as it moves closer to oversold conditions.

Therefore, the bears will be targeting extended declines at about 0.6469 or lower at 0.6443. On the other hand, the bulls will look to pounce on potential rebounds at about 0.6520 or higher at 0.6545.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to have recently completed an upward breakout from a descending channel formation. However, the 14-day RSI has recently pulled back to move closer to oversold conditions.

Therefore, the bears will be targeting extended pullbacks at about 0.6385 or lower at 0.6267. On the other hand, the bulls will be targeting long-term profits at about 0.6620 or higher at 0.6738.

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