On Thursday, the AUD/USD currency pair pulled back off session highs of about 0.6533 to trade at about 0.6492. The currency pair appears to be trading within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the currency pair dropped to the oversold levels of the 14-hour RSI before making a late recovery.

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 Thursday, the US initial jobless claims for the week ending January 2 beat the expected claim count of 220k with a slightly lower tally of 218k. The continuing claims for the preceding week also outshone the estimate of 1.878 million with a tally of 1.871 million. Earlier in the week, the ISM Services PMI for January outshone the forecasted reading of 52 with a reading of 53.4.

In Australia, the Reserve Bank of Australia decided to keep the base interest rate unchanged at 4.35% in line with expectations. The AiG industry index for December fell to -27.3 down from the previous update of -22.4. On the other hand, the construction PMI for the period improved to -11.5 compared to -22.2 in the previous period, while the manufacturing PMI came in at -23.8 versus the previous update of -25.3. Australian retail sales for Q4 posted a (QoQ) change of 0.3% compared to a change of -0.1% in the previous period.

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

Technically, the AUD/USD currency pair appears to be trading within a descending channel formation in the 60-minute chart. The 14-hour RSI bounced back late on Thursday to recover from oversold conditions.

Therefore, the bulls will be targeting extended rebounds at about 0.6512 or higher at 0.6533. On the other hand, the bears will be looking to stretch the current declines toward 0.6470 or lower to 0.6450.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a descending channel formation. The 14-day RSI also seems to support a long-term bearish bias as it moves closer to oversold conditions.

Therefore, the bears will be targeting extended declines at about 0.6381 or lower at 0.6278. On the other hand, the bulls will look to pounce on profits at about 0.6603 or higher at 0.6707.