The AUD/USD currency pair on Friday pulled back from the current monthly highs of about 0.6972 to trade at about 0.6920. The currency pair continues to trade within an ascending channel formation in the 60-min chart.
The pair also remains pinned above the 100-hour moving average line indicator. Friday’s pullback prevented the current pair from advancing into the overbought 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 preliminary S&P Global Manufacturing PMI for July beat the expectation of 52 with 52.3. On the other hand, the PMI Composite for the period missed the expectation of 51.7 with 47.5, while the Services PMI came short of 52.6 with 47. On Thursday, the initial jobless claims for the week ending July 15 also missed the expected claim count of 240k with a tally of 251k, while the continuing claims for the preceding week of 1.384 million failed to match the market forecast of 1.34 million.
In Australia, the preliminary S&P Global Services PMI for July missed the expectation of 55 with 50.4, while the S&P Global Manufacturing PMI for the period came short of 56.4 with 55.7. The National Australia Bank’s Business Confidence for Q2 missed the (QoQ) estimate of 16 with 5.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to stretch the current rally toward 0.6944 or higher to 0.6972. On the other hand, the bears will be targeting more pullbacks at about 0.6900, or lower at 0.6871.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair seems to be about to complete a descending double-bottom pattern formation. This indicates an attempt by the bulls to trigger a market reversal.
Therefore, they will be targeting long-term profits at about 0.70420, or higher at 0.7163. On the other hand, the bears will be looking to pounce for profits at about 0.6822 or lower at 0.6712.