On Thursday, the AUD/USD currency pair pulled back from the session highs of about 0.6448 to trade at about 0.6404. The currency pair trades within a descending channel formation in the 60-minute chart. 

The pair has now plummeted to trade slightly below the 100-hour moving average line. As a result, the currency pair is on the verge of entering the oversold levels of the 14-hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair trades during a relatively busy period in both markets. On Thursday, the seasonally adjusted Australian employment change for April improved to 89k, up from 36.4k in March, beating the forecasted job count of 20k.

The participation rate for the month also rose to 67.1%, up from 66.8, beating the forecasted rate of 66.8, while the unemployment rate was unchanged at 4.1%, in line with estimates.

In the U.S., the Philadelphia Fed manufacturing Survey for May came in stronger than expected with -4 versus a forecast of -11, up from the preceding month’s equivalent of -26.4. On the other hand, the NY Empire State Manufacturing Index for the month exceeded expectations of -10 with -9.2, down from -8.1 in April.

The producer price index for April fell short of the forecasted (MoM) and (YoY) rates of 0.2% and 2.5%, respectively with -0.5% and 2.4%. The producer price index ex-food and energy for the month also missed the forecasted (MoM) change of 0.3% with a change of -0.4%, while the (YoY) equivalent was in line with the estimate of 3.1%.

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

Technically, the AUD/USD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI has also plummeted to move closer to oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 0.6364 or lower to 0.6320. On the other hand, the bulls will look to pounce on rebounds at about 0.6448 or higher at 0.6488.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.6283 or lower to 0.6172. On the other hand, the bulls will look to ride the current rally towards 0.6512 or higher to 0.6623.