On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.6523 to trade at about 0.505 after the latest data. The currency pair is about to complete a downward breakout from an ascending channel formation in the 60-minute chart.

The pair has since fallen to trade a few levels below the 100-hour moving average line. As a result, the currency pair avoided rallying into the overbought 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. In Australia, the seasonally adjusted employment change for July rose to 24.5k, up from 1k in June, missing the forecasted change of 25k.

The participation rate for the period also fell short of the forecast of 67.1%, with 67, unchanged from June. The seasonally-adjusted unemployment rate for the month edged slightly lower to 4.2%, down from 4.3%, in line with estimates.

In the U.S., the NY Empire State Manufacturing Index for August outperformed the expectation of 0, with a reading of 11.9. The retail sales for July matched the expectation of 0.5% (MoM), while retail sales ex-autos were also in line with the forecasted (MoM) change of 0.3%. On the other hand, the industrial production for July fell short of 0% with a change of -0.1% (MoM).

The preliminary Michigan Consumer Sentiment Index for August also missed the expectation of 62, with a reading of 58.6, while the preliminary Michigan Consumer Expectation Index for the period outshone the estimate of 56.5 with a reading of 57.2.

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

Technically, the AUD/USD currency pair has recently completed a downward breakout from an ascending channel formation. The 14-hour RSI has also pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.6485 or lower to 0.6465. On the other hand, the bulls will look to pounce on profits at about 0.6523 or higher at 0.6542.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within an ascending channel formation. However, the 14-hour RSI still has a lot of room left to run before reaching overbought conditions.

Therefore, the bulls will look to ride the current rally towards 0.6588 or higher to 0.6667. On the other hand, the bears will look to pounce on pullbacks at about 0.6421 or lower at 0.6341.