On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.7044 to trade at about 0.7006. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade slightly below the 100-hour moving average line after the latest pullback. However, it still has some 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 both markets. In Australia, the gross domestic product for Q4 outperformed the (QoQ) expectation of 0.6%, with a change of 0.8%. The (YoY) equivalent also outshone the estimate of 2.2%, with a change of 2.6%.

On the other hand, the S&P Global Composite PMI for February exceeded the forecast of 52, with a reading of 52.4, up from 52 in January. The S&P Global Services PMI for the month also beat the forecast of 52.2, with a reading of 52.8, up from the previous month’s equivalent of 52.2.

In the US, nonfarm payrolls for February fell to -92k, down from 126k in January, missing the forecasted job count of 59k. The average hourly earnings for the month grew by 0.4% (MoM), beating the forecasted growth rate of 0.3%. The (YoY) growth was also better than expected, with 3.8% versus a forecast of 3.7%.

On the other hand, the unemployment rate for the period rose slightly to 4.4%, up from 4.3% in the preceding month, missing the forecasted rate of 4.3%. Elsewhere, the retail sales for January outperformed the expected (MoM) change of -0.3%, with a change of -0.2%.

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 after pulling back to move closer to oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.6959 or lower to 0.6915. On the other hand, the bulls will look to pounce on rebounds at about 0.7044 or higher at 0.7085.

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 recover from overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.6865 or lower to 0.6718. On the other hand, the bulls will look to pounce on rebounds at about 0.7134 or higher at 1.7281.