The AUD/USD currency pair on Thursday pulled back off the session highs of about 0.6625 to trade at about 0.6570. The currency pair appears to be trading within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade closer to the 100-hour moving average line. As a result, the currency pair appears to be 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 is trading at the back of a relatively busy period in both markets. On Thursday, Australia’s seasonally adjusted employment change for February outperformed the expected change of 40k with a change of 116.5k, up from 15.3k in the previous period. Full-time employment for the period also posted an increase of 78.2k up from 19.9k in January, while part-time employment rose from a change of -4.6k to a change of 38.3k.

The participation rate for the month edged slightly higher to 66.7%, up from 66.6%, missing the forecast of 66.8%. On the other hand, the unemployment rate for the period decreased to 3.7% from 4.1% in January, beating the expectation of 4%.

In the US, the Philadelphia Fed Manufacturing Survey for March outperformed the expectation of -2.3 with a reading of 3.2, down from the previous month’s equivalent of 5.2. The initial jobless claims for the week ending March 15, also outshone the forecast of 215k with a lower tally of 210k.

The preliminary S&P Global Service PMI for March missed the estimate of 52 with a reading of 51.7, while the Manufacturing PMI beat 51.7 with a reading of 52.5.

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

Technically, the AUD/USD currency pair appears to be trading within a descending channel formation in the 60-minute chart. The 14-hour RSI has also fallen to trade closer to the oversold levels.

Therefore, the bears will be targeting extended declines at about 0.6541 or lower at 0.6512. On the other hand, the bulls will look to pounce on rebounds at about 0.6594 or higher at 0.6624.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 0.6512 or lower at 0.6451. On the other hand, the bulls will be targeting long-term profits at about 0.6631 or higher at 0.6695.