On Friday, the AUD/USD currency pair pulled back from the session highs of about 0.7183 to trade at about 0.7173. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade several levels above the 100-hour moving average line, despite the latest pullback. As a result, the currency pair still has plenty of room left to run before reaching the oversold levels of the 14hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair trades during a relatively busy period in both markets. On Thursday, the US industrial production for March missed the expected (MoM) change of 0.1%, with a change of -0.5%.

On the other hand, the Philadelphia Fed Manufacturing Survey for April rose to 26.7, up from the previous update of 18.1, beating the forecasted reading of 10. The initial jobless claims for last week also came in better than expected, with 207k versus a forecast of 215k, down from the preceding week’s claim count of 218k.

In Australia, the seasonally-adjusted unemployment rate for March was unchanged at 4.3%, in line with expectations. However, the participation rate for the month fell to 66.8%, down from 66.9% in February, missing the forecasted rate of 66.9%. The employment change for the period also fell to 17.9k, down from the previous month’s equivalent of 49.7k, missing the forecasted change of 20k.

Consumer inflation expectations for April improved to 5.9%, up from 5.2%. Earlier in the week, the Westpac consumer confidence for April fell by -12.5%, compared to a change of 1.2% in the previous update.

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 still has room left to run before reaching overbought conditions. 

Therefore, the bulls will look to stretch the latest gains toward 0.7183 or higher to 0.7195. On the other hand, the bears will look to pounce on pullbacks at about 0.7160 or lower at 0.7148. 

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 long-term bullish bias as it moves closer to overbought conditions.

Therefore, the bulls will look to extend the current rally towards 0.7243 or higher to 0.7329. On the other hand, the bears will look to pounce on pullbacks at about 0.7094 or lower at 0.7005.