The AUD/USD currency pair on Friday momentarily rallied above the 100-hour moving average line before pulling back to 0.6372. The currency pair appears to be trading within a descending channel formation in the 60-min chart. 

The pair has now plummeted to trade a few levels below the 100-hour MA. As a result, the currency pair appears to be on the verge of crossing to 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, US wholesale inventories for July outperformed the expected change of -0.1% with a change of -0.2%. On Thursday, unit labour costs for Q2 also beat the estimated change of 1.6% with a change of 2.2%, while nonfarm productivity fell short of the forecasted change of 3.8% with a change of 3.5%. Elsewhere, the initial jobless claims for the week ending September 1 outperformed the expected reading of 234k with a tally of 216k.

In Australia, the trade balance for July missed the expectation of 10,000 million with a reading of 8,039 million. Exports and Imports improved with a change of -2% and 3%, respectively up from the previous update’s equivalent of -3% and -3%. Earlier in the week, the Reserve Bank of Australia held the base interest rate unchanged at 4.1% in line with estimates. The Q2 GDP beat estimates both on a (QoQ) and (YoY) basis with 0.4% and 2.1%.

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. The hourly MACD also seems to be about to complete a downward crossover, indicating a bearish sentiment.

Therefore, the bears will be looking to stretch the current run of declines toward 0.6356 or lower to 0.6338. On the other hand, the bulls will look to pounce on rebounds at about 0.6391 or higher at 0.6407.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a descending channel formation. The daily MACD also seems to have recently completed a downward crossover, supporting a bearish sentiment.

Therefore, the bears will be targeting long-term declines at about 0.6303 or lower at 0.6231. On the other hand, the bulls will look to pounce on profits at about 0.6459 or higher at 0.6526.