On Friday, the AUD/USD currency pair pulled back off the session highs of about 0.6847 to trade at about 0.6795. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now traded several levels below the 100-hour moving average line. As a result, the currency pair has since plummeted to trade deep into 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 Friday, the the U.S. jobs data came in better than expected with 254k versus a forecast of 140k, up from the preceding month’s equivalent of 159k.

The unemployment rate for the month also outshone the forecast of 4.2% with a rate of 4.1%, down from 4.2% in August, while the average hourly wage for the period beat the expected (MoM) and (YoY) changes of 0.3% and 3.8%, respectively with changes of 0.4% and 4%.

On Thursday, the US initial jobless claims for the week ending September 27 fell short of the forecasted claim count of 220k with a significantly higher tally of 225k, up from the preceding week’s equivalent of 219k.

In Australia, the trade balance for August outperformed the expected balance of 5,500 million with a balance of 5,644 million. On the other hand, the Judo Bank services PMI for September fell short of the forecasted reading of 50.6 with a reading of 50.5.

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

Technically, the AUD/USD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish bias as it moves closer to oversold conditions.

Therefore, the bears will look to extend the current decline towards 0.6767 or lower to 0.6739. On the other hand, the bulls will look to pounce on rebounds at about 0.6820 or higher at 0.6847.

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 has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 0.6701 or lower to 0.6611. On the other hand, the bulls will look to pounce on rebounds at about 0.6884 or higher at 0.6971.