The AUD/USD currency pair on Wednesday failed to retest Tuesday’s and the current 2-week highs of about 0.6578, falling to 0.6544. The currency pair appears to be trading within a descending channel formation in the 60-minute chart.
The pair has now fallen to trade closer to the 100-hour moving average line. As a result, the currency pair has moved closer to the oversold levels of the 14-hour RSI.
AUD/USD Fundamentals Overview
From a fundamental perspective, the AUD/USD currency pair is trading ahead of a relatively busy period in both markets. Traders will be looking forward to Australia’s preliminary Judo Bank Manufacturing, Services and Composite PMIs for February late on Wednesday. Earlier on Wednesday, Australia’s Q4 Wage Price Index matched the expected (QoQ) change of 0.9%, down from 1.3% in the previous update. On the other hand, the (YoY) equivalent rose to 4.2% up from 4.1%, beating the estimate of 4.2%.
In the US, traders will be looking forward to Thursday’s preliminary S&P Global Manufacturing, Services and Composite PMIs for February and the initial jobless claims data for last week. On Wednesday, the Redbook Index for the week ending February 16, edged higher to 3% up from 2.5% in the preceding week. MBA Mortgage applications for last week declined by 10.6% compared to a decline of 2.3% in the previous week.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency appears to be trading within a 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 looking to extend the current declines toward 0.6525 or lower to 0.6526. On the other hand, the bulls will look to pounce on potential rebounds at about 0.6561 or higher at 0.6578.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair also seems to be trading within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.
Therefore, the bulls will be targeting extended rebounds at about 0.6636 or higher at 0.6731. On the other hand, the bears will look to pounce on potential pullbacks at about 0.6448 or lower at 0.6356.