On Thursday, the AUD/USD currency pair pulled back from the session highs of about 0.7146 to trade at about 0.7095. 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 Thursday’s pullback. As a result, the currency pair still has room left to run before reaching oversold conditions.

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 Thursday, the initial jobless claims for last week fell to 227k, down from the previous week’s equivalent of 232k, missing the forecasted claim count of 222k. 

On Wednesday, the average hourly earnings for January exceeded the (MoM) forecast of 0.3%, with a change of 0.4%. The (YoY) equivalent also outshone the estimate of 3.6%, with a change of 3.7%. The unemployment rate for the period fell to 4.3%, down from 4.4%, and lower than the forecasted rate of 4.4%. On the other hand, the US jobs data for the month increased to 130k, up from 48k in December, beating the forecasted tally of 70k.

Earlier in the week, the US retail sales for December missed the expected (MoM) change of 0.4%, with a change of 0%. The retail sales ex-autos also fell short of the forecasted change of 0.3%, with a change of 0%. Looking forward, traders will be waiting for the US consumer price index data for January on Friday.

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 avoid rallying into overbought conditions.

Therefore, the bears will look to extend the latest pullback towards 0.7043 or lower to 0.6992. On the other hand, the bulls will look to pounce on profits at about 0.7146 or higher at 0.7196.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair has recently completed an upward breakout from an ascending channel formation. However, the 14-day RSI has pulled back to recover from overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.6905 or lower to 0.6716. On the other hand, the bulls will look to pounce on profits at about 0.7281 or higher at 0.7456.