The AUD/USD currency pair on Thursday pulled back off session highs of about 0.6629 to trade at about 0.6583. The currency pair appears to have completed a downward breakout from a sideways channel formation.

The pair has now fallen to trade a few levels below the 100-hour moving average line in the 60-minute chart. 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 the US market. On Thursday, the US retail sales for February missed the expected (MoM) change of 0.8% with a change of 0.6%. The retail sales ex-autos also failed to match the forecasted (MoM) change of 0.5% with a change of 0.3%, up from -0.8% in the previous period.

The retail sales control group also registered an improved change of 0% compared to a change of -0.3% in the previous update. Business inventories for January came in better than expected with a change of 0% compared to a forecast of 0.2%, down from 0.3%.

Elsewhere, the producer price index for February outperformed the expectation of 0.3% with a change of 0.6% (MoM). The (YoY) equivalent also beat the forecast of 1.1% with a change of 1.6%. The producer price index ex-food and energy exceeded the (MoM) and (YoY) expectations of 0.2% and 1.9%, respectively with a change of 0.3% and 2%.

The initial jobless claims for the week ending March 8 outshone the estimated claim count of 218k with a significantly lower tally of 209k.

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

Technically, the AUD/USD currency pair appears to have recently completed a downward breakout from a sideways channel formation in the 60-minute chart. The 14-hour RSI also seems to support a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will be looking to extend the current pullback towards 0.6552 or lower to 0.6523. On the other hand, the bulls will look to pounce on potential rebounds at about 0.6603 or higher at 0.6629.

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 pullback profits at about 0.6502 or lower at 0.6420. On the other hand, the bulls will be targeting long-term profits at about 0.6669 or higher at 0.6758.