On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.6432 to trade at about 0.6417 after the latest data. The currency pair trades within a slightly descending channel formation in the 60-minute chart.

The pair has now fallen to trade several levels below the 100-hour moving average line. However, the currency pair still has room left to run before reaching 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. initial jobless claims for the week ending August 15 increased to 235k, up from the previous week’s claim count of 225k, missing the forecasted claim count of 224k.

The preliminary US S&P Global Manufacturing PMI for August outperformed the expectation of 49.5 with a reading of 53.3, while the preliminary S&P Global Services PMI for the period beat 54.2 with a reading of 55.4.

Existing home sales for July improved with a (MoM) change of 2% versus -2.7% in the previous month. On the other hand, the Philadelphia Fed Manufacturing Survey for August missed the expected reading of 7 with a reading of -0.3.

In Australia, consumer inflation expectations for August fell to 3.9%, down from 4.7% in July. Earlier in the week, the preliminary S&P Global Composite, Manufacturing, and Services PMIs for Australia improved to 54.9, 52.9, and 55.1, respectively, up from the previous month’s equivalents of 53.8, 51.3, and 54.1.

AUD/USD Technical Analysis (the 60-min Chart)

Technically, the AUD/USD currency pair trades within a gently 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 decline towards 0.6402 or lower to 0.6385. On the other hand, the bulls will look to pounce on rebounds at about 0.6432 or higher at 0.6448.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within a slightly descending channel formation. The 14-day RSI also supports a long-term bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to extend the current downward movement towards 0.6328 or lower to 0.6245. On the other hand, the bulls will look to pounce on profits at about 0.6505 or higher at 0.6589.