On Thursday, the AUD/USD currency pair pulled back from the session highs of about 0.6593 to trade at about 0.6562 after the latest data. The currency pair also completed a downward breakout from an ascending channel formation in the 60-minute chart.

Thursday’s pullback pushed the currency pair level to the 100-hour moving average line. As a result, the pair is on the verge of entering 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 Wednesday, Australia’s consumer price index for Q3 outperformed the (QoQ) expectation of 1.1%, with 1.3%. The (YoY) equivalent also beat the forecast of 3%, with 3.2%, while the monthly consumer price index for September outshone the estimate of 3.1%, with 3.5% (YoY).

On the other hand, the RBA trimmed mean CPI for Q3 exceeded the expectation of 0.8%, with 1% (QoQ). The (YoY) equivalent also outshone 2.7%, with 3%.

In the U.S., the pending home sales for September missed the expectation of 1.7%, with a (MoM) change of 0%, down from 4.2%. MBA Mortgage applications improved with a change of 7.1% versus -0.3% in the previous update.

The Federal Reserve lowered the base interest rate by 25 basis points to 4%, down from 4.25%, in line with expectations. The Richmond Fed Manufacturing Index for October outperformed the expectation of -14, with a reading of -4, up from the previous month’s equivalent of -17.

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

Technically, the AUD/USD currency pair has completed a downward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI has also pulled back to move closer to oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 0.6527 or lower to 0.6493. On the other hand, the bulls will look to pounce on rebounds at about 0.6593 or higher at 0.6625.

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-day RSI still has room left to run before reaching overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 0.6686 or higher to 0.6801. On the other hand, the bears will look to pounce on pullbacks at about 0.6436 or lower at 0.6320.