On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.6416 to trade at about 0.6377. The currency pair also completed a downward breakout from an ascending channel formation in the 60-minute chart.
The pair has now descended to trade slightly below the 100-hour moving average line. As a result, the currency pair is moving closer to 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 the U.S. market. On Thursday, the U.S. durable goods orders for March outperformed the expectation of 2% with a change of 9.2%. The durable goods orders ex-defence also beat the forecast of 0.2% with a change of 10.4%, while the durable goods orders ex-transportation missed the estimate of 0.2% with a change of 0%.
On the other hand, the nondefense capital goods orders ex-aircraft fell short of 0.2% with a change of 0.1%, while the existing home sales change for the period failed to match the estimate of -3% with -5.9%. Elsewhere, the initial jobless claims for the week ending April 18 came in slightly higher than expected with 222k versus a forecast of 221k, up from the previous week’s claim count of 216k.
Earlier in the week, the preliminary S&P Global Manufacturing PMI for April came in better than expected with 50.7 versus a forecast of 49.4. On the other hand, the preliminary S&P Global Services PMI for the period missed the expectation of 52.8 with a reading of 51.4.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair has completed a downward breakout from an ascending channel formation. The 14-hour RSI also supports a bearish bias as it moves closer to oversold conditions.
Therefore, the bears will look to stretch the current pullback towards 0.6332 or lower to 0.6292. On the other hand, the bulls will look to pounce on rebounds at about 0.6416 or higher at 0.6458.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair trades within an ascending channel formation after a recent rebound. However, the 14-day RSI still has room to run before reaching overbought conditions.
Therefore, the bulls will look to ride the current run of gains toward 0.6521 or higher to 0.6673. On the other hand, the bears will look to pounce on pullbacks at about 0.6225 or lower to 0.6081.