On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.6550 to trade at about 0.6520 after the latest data. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now plummeted to trade slightly below the 100-hour moving average line. As a result, the currency pair is moving 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 the Australian market. On Thursday, the Australian consumer inflation expectation for November decreased to 4.5%, down from 4.8% in the previous update. The seasonally-adjusted employment change for October came in stronger than expected, with 42.2k versus a forecast of 20k, up from the preceding month’s equivalent of 12.8k. 

Full-time employment for the month also increased to 55.3k, up from 6.5k, while part-time employment fell to -13.1k, down from 6.3k. On the other hand, the participation rate for the period was unchanged at 67%. The unemployment rate for the month fell to 4.3%, down from 4.5% in September, beating the forecast of 4.4%.

Earlier in the week, the Australian home loans for Q3 outperformed the expected change of 2.5%, with a change of 4.7%, while investment lending for the quarter beat 4%, with a change of 17.6%. Elsewhere, Westpac consumer confidence for November improved with a change of 12.8%, versus a decline of -3.5% in the previous period. 

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 edges closer to oversold conditions.

Therefore, the bears will look to extend the current pullback towards 0.6491 or lower to 0.6458. On the other hand, the bulls will look to pounce on rebounds at about 0.6550 or higher at 0.6580.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the latest rebound towards 0.6624 or higher to 0.6711. On the other hand, the bears will look to ride the current run of declines toward 0.6418 or lower to 0.6327.