The AUD/USD currency pair on Friday rallied to trade at about 0.6465 before pulling back to 0.6440 following the latest round of data. The currency pair appears to have completed a downward breakout from an ascending channel formation.
The pair has now trimmed the daily gains to trade at the 100-hour moving average line. Friday’s pullback prevented the currency pair from advancing into the overbought levels 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 preliminary US S&P Global Manufacturing PMI for September outperformed the expected reading of 48 with a reading of 48.9.
The S&P Global Services PMI for the period missed the estimate of 50.6 with a reading of 50.2, while the composite PMI edged lower to 50.1 down from 50.2. Elsewhere, the Philadelphia Fed Manufacturing Survey for September missed the expectation of -0.7 with a reading of -13.5. The Federal Reserve decided to keep the interest rate unchanged at 5.5% in line with expectations.
In Australia, the preliminary S&P Global Composite PMI for September edged higher to 50.2 up from 48 in the previous update. On the other hand, the Manufacturing PMI edged lower to 48.2, down from 49.6, while the Services PMI for the period rose to 50.5 from the previous update of 47.8.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair appears to have recently completed a downward breakout from an ascending channel formation. The hourly MACD also seems to indicate an imminent downward crossover.
Therefore, the bears will be looking to extend the current pullback towards 0.6431 or lower to 0.6419. On the other hand, the bulls will look to pounce on rebounds at about 0.6451 or higher at 0.6461.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair appears to be trading within an ascending channel formation. The daily MACD also seems to support a bull case after completing an upward crossover.
Therefore, the bulls will be targeting long-term profits at about 0.6481 or higher at 0.6527. On the other hand, the bears will look to pounce on pullbacks at about 0.6396 or lower at 0.6349.