On Friday, the AUD/USD currency pair extended Thursday’s gains from lows of about 0.7175 to trade at about 0.7202. The currency pair trades within an ascending channel formation on the 60-minute chart.

The pair continues to trade several levels above the 100-hour moving average line. However, the currency pair still has some room left to run before reaching the overbought 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 consumer price index for July outperformed the expected (MoM) change of 0.8%, with a change of 1%. The (YoY) equivalent also exceeded the forecast of 3.2%, with a change of 3.5%. 

On the other hand, the trimmed CPI for the month outperformed both the (MoM) and (YoY) expectations of 0.3% and 3.5%, respectively, with changes of 0.5% and 3.6%. Elsewhere, private capital expenditure for Q2 missed the expected 0% change, recording -3.6%.

In the US, the initial jobless claims for last week came in better than expected, at 203k versus a forecast of 208k, down from the previous week’s equivalent of 207k. Personal income for July also outperformed the forecast (MoM) change of 0.3%, with a 0.4% change, while personal spending matched the forecast of 0.2%. 

The US durable goods orders for July outshone the forecasted change of 0.7%, with a change of 1.1%, while durable goods orders ex-transportation missed the estimate of 0.5%, with 0.4%.  Elsewhere, the preliminary US gross domestic product for Q2 matched the expected change of 1.5%. The preliminary gross domestic product price index beat 6.3%, with a change of 6.4%.

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

Technically, the AUD/USD currency pair trades within an ascending channel formation on 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 0.7175 or lower to 0.7148. On the other hand, the bulls will look to pounce on profits at about 0.7228 or higher at 0.7255.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair also trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 0.7275 or higher to 0.7344. On the other hand, the bears will look to pounce on pullbacks at about 0.7131, or lower at 0.7062.