On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.6440 to trade at about 0.6417 after the latest data. The currency pair trades within a descending channel formation in the 60-minute chart. 

The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair moved 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 both markets. On Friday, the Australian building permits for April missed the expected (MoM) change of 3.1% with a change of -5.7%.

The seasonally adjusted retail sales for April also fell short of the forecasted (MoM) change of 0.3% with a change of -0.1%. Earlier in the week, private capital expenditure for Q1 failed to match the expected change of 0.5% with a change of -0.1%.

In the U.S., the preliminary personal consumption expenditures for Q1 matched the forecasted change of 3.6%. The preliminary core personal consumption expenditures for the quarter fell short of 3.5% with a change of 3.4%. The preliminary annualised U.S. gross domestic product for Q1 exceeded the forecast of -0.3% with a change of -0.2%, while the preliminary gross domestic product price index was in line with the estimate of 3.7%.

Elsewhere, the initial jobless claims for the week ending May 23 came in significantly higher than expected with 240k versus a forecast of 230k, up from the preceding week’s equivalent of 226k.

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. However, the 14-hour RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to extend the current pullback towards 0.6399 or lower to 0.6382. On the other hand, the bulls will look to pounce on rebounds at about 0.6435 or higher at 0.6450.

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 0.6362 or lower to 0.6303. On the other hand, the bulls will look to ride the current rally towards 0.6476 or higher to 0.6535.