On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.6513 to trade at about 0.6489 after the latest data. The currency pair trades within a descending channel formation in the 60-minute chart. 

The pair has now fallen to trade closer to the 100-hour moving average line. As a result, the currency pair is on the verge of entering 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 U.S. jobs data for May came in better than expected with 139k versus a forecast of 130k, down from the previous month’s equivalent of 147k.

The average hourly wage growth from the month also outshone the forecasted (MoM) change of 0.3% with a change of 0.4%, while the (YoY) equivalent beat 3.7% with a change of 3.9%. Elsewhere, the unemployment rate for May was unchanged at 4.2%, in line with expectations, while the participation rate fell slightly to 62.4% down from 62.8%.

In Australia, the gross domestic product for Q1 missed the expected (QoQ) change of 0.4% with a change of 0.2%. The (YoY) equivalent also fell short of 1.5% with a change of 1.3%, while the S&P Global Services PMI for May came in better than expected with 50.6 versus a forecast of 50.5. Australia’s Trade Balance for April missed the expectation of 6,100 million with 5,413 million, down from 6,892 million in March.

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. 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 run of declines toward 0.6464 or lower to 0.6439. On the other hand, the bulls will look to pounce on rebounds at about 0.6513 or higher at 0.6536.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it moves closer to overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 0.6567 or higher to 0.6649. On the other hand, the bears will look to pounce on pullbacks at about 0.6411 or lower at 0.6330.