On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.6671 to trade at about 0.6647 after the U.S. data. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade slightly above the 100-hour moving average line, despite the pullback. The currency pair still has room left to run before reaching 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 U.S. market. On Friday, the preliminary Michigan Consumer Sentiment Index for September missed the expectation of 58 with a reading of 55.4. The preliminary Michigan Consumer Expectations Index for the period also fell short of 54.9, with a reading of 51.8.

On Thursday, the U.S. consumer price index for August outshone the forecasted (MoM) change of 0.3% with a change of 0.4%. The (YoY) equivalent matched the estimate of 2.9%. The consumer price index ex-food and energy was also in line with the estimates of 0.3% (MoM) and 3.1 (YoY). Elsewhere, the initial jobless claims for last week came in higher than expected, with 63k versus a forecast of 36k, up from the preceding week’s claim count of 35k. 

Earlier in the week, the U.S. producer price index for August missed the forecasted (MoM) 0.3%, with a change of -0.1%. The (YoY) equivalent also fell short of 3.3% with a change of 2.6%. The producer price index ex-food and energy missed the expected (MoM) and (YoY) changes of 0.3% and 3.5%, respectively, with changes of -0.1% and 2.8%.

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

Technically, the AUD/USD currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.6621 or lower to 0.6591. On the other hand, the bulls will look to pounce on profits at about 0.6671 or higher at 0.6700.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within an ascending channel formation. The 14-day RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 0.6765 or higher to 0.6877. On the other hand, the bears will look to pounce on pullbacks at about 0.6521 or lower at 0.6415.