On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.7134 to trade at about 0.7109 after the latest 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 latest pullback. As a result, 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 both markets. In Australia, private capital for Q4 grew by 0.4% compared to a forecast of 0%. The consumer price index for January also exceeded the expectation of 3.7%, with 3.8% (YoY), unchanged from the previous period. The (MoM) equivalent edged lower to 0.4%, down from 1%. 

The Trimmed mean CPI for the period edged slightly higher to 3.4%, up from 3.3%, ahead of the forecasted rate of 3.3%, while the (MoM) equivalent rose to 0.3%, up from 0.2% in December.

In the US, the initial jobless claims for last week came in lower than expected, with 212k versus a forecast of 215k, up from the preceding week’s claim count of 208k. 

Earlier in the week, the housing price index for December missed the expected (MoM) change of 0.3%, with a change of 0.1%. The S&P/Case-Shiller Home Price Indices for the period also fell short of 1.5%, with a change of 1.4% (YoY). Elsewhere, factory orders for the month missed the expected (MoM) change of 1.1%, with a change of -0.7%.

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 moving closer to overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.7078 or lower to 0.7052. On the other hand, the bulls will look to pounce on profits at about 0.7134 or higher at 0.7162.

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 be looking to extend the latest pullback towards 0.6996 or lower to 0.6895. On the other hand, the bulls will look to pounce on profits at about 0.7198 or higher at 0.7289.