The AUD/USD currency pair on Friday pulled back off the 100-hour moving average line following the latest round of data. The currency pair continues to trade within a gently descending channel formation in the 60-min chart.
The pair has now descended to trade a few levels below the 100-hour MA. As a result, the currency pair seems to be moving closer to 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 Friday, the US existing home sales for October outperformed the expected tally of 4.38 million with a tally of 4.43 million.
On the other hand, the existing home sales change for the period failed to match the forecast of -0.1% with a change of -5.9%. Earlier in the week, US retail sales beat the expected (MoM) change of 1% with a change of 1.3%, while the retail sales control group outshone the forecast of 0.4% with a change of 0.7%.
In Australia, the unemployment rate for October fell to 3.4% down from 3.5% in the previous month, beating the expectation of 3.6%. On the other hand, the seasonally-adjusted employment change for the month outshone the forecast of 15k jobs with a tally of 32.2k, the participation rate remained unchanged at 66.5% from the previous month, missing the forecasted rate of 66.6%.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair seems to be trading within a gently descending channel formation in the 60-min chart. This indicates a slight short-term bearish bias in the market sentiment.
Therefore, the bears will be targeting short-term profits at about 0.6636 or lower at 0.6577. On the other hand, the bulls will look to pounce on potential rebounds at about 0.6717 or higher at 0.6774.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair appears to be trading within a sharply ascending channel formation. This indicates a strong long-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to stretch the current gains toward 0.6895 or higher to 0.7114. On the other hand, the bears will be targeting long-term profits at about 0.6436 or lower at 0.6200.