The AUD/USD currency pair on Thursday pulled back off the session highs of about 0.6549 to trade at about 0.6522. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.

The currency pair has now dropped to trade at the 100-hour moving average line. Thursday’s pullback also prevented the pair from ascending into the overbought levels of the 14-hour RSI.

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 Australian building permits for March missed the expectation of 3% with a change of 1.9%. The trade balance for April also fell short of 7,370 million with a balance of 5,024 million.

Earlier in the week, Australian retail sales for March failed to match the expected (MoM) change of 0.2% with a change of -0.4%. Private sector credit for the period also fell short of the forecasted (MoM) change of 0.4% with a change of 0.3%.

In the US, the initial jobless claims for the week ending April 26 outperformed the expected claim count of 212k with a slightly lower tally of 208k. The preliminary nonfarm productivity or Q1 also exceeded expectations of 0.8% with a change of 4.7%, while the preliminary unit labour costs for the quarter fell short of the forecasted change of 3.2% with a change of 0.3%.

On Wednesday, the Federal Reserve decided to keep the base interest rate unchanged at 5.5% in line with expectations. 

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

Technically, the AUD/USD currency pair continues to trade within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 0.6500 or lower at 0.6476. On the other hand, the bulls will look to pounce on profits at about 0.6549 or higher at 0.6572.

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. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will be targeting extended rebounds at about 0.6583 or higher at 0.6641. On the other hand, the bears will be targeting pullback profits at about 0.6460 or lower at 0.6397.