On Thursday, the AUD/USD currency pair pulled back off the session high of about 0.6552 to trade at about 0.6502 after US data. The currency pair trades within a slightly descending channel formation in the 60-minute chart.
Thursday’s pullback pushed the currency pair a few levels below the 100-hour moving average line. As a result, the pair plummeted to trade 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 Thursday, the US ISM Manufacturing PMI for July missed the expectation of 48.8 with a reading of 46.8. The ISM Manufacturing Prices Paid outshone the forecast of 51.8 with a reading of 52.9. The ISM Manufacturing Employment Index for the month missed the estimate of 49 with a reading of 43.4.
On the other hand, nonfarm productivity for Q2 exceeded expectations of 1.7% with a change of 2.3%, while unit labour costs missed 1.8% with a change of 0.9%. The US initial jobless claims for the week ending July 26 also failed to match the forecast of 236k with a tally of 249k.
In Australia, the trade balance for June exceeded expectations of 5,000 million with 5,589 million, up from 5,052 million. Earlier in the week, the Reserve Bank of Australia’s trimmed mean CPI for Q2 missed both the (QoQ) and (YoY) expectations of 1% and 4%, respectively with changes of 0.9% and 3.9%. The seasonally adjusted retail sales for June beat the forecast of 0.2% with a change of 0.5% (MoM), while Q2 CPI was in line with estimates of 1% (QoQ) and 3.8% (YoY).
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. The 14-hour RSI has also plummeted towards the oversold levels of the indicator.
Therefore, the bears will look to extend the current pullbacks toward 0.6454 or lower to 0.6404. On the other hand, the bulls will look to pounce on rebounds at about 0.6551 or higher at 0.6600.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair trades within a gently ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will be targeting long-term pullbacks at about 0.6366 or lower at 0.6199. On the other hand, the bulls will look to pounce on rebounds at about 0.6653 or higher at 0.6798.