On Thursday, the AUD/USD currency pair pulled back from the session highs of about 0.7265 to trade at about 0.7240. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair has now dropped to trade at the 100-hour moving average line. However, the currency pair still has plenty of 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 the US market. On Wednesday, Australia’s wage price index for Q1 matched the (QoQ) expectation of 0.8%, unchanged from the previous period. 

In the US, the initial jobless claims for last week increased to 211k, up from the previous week’s claim count of 199k, missing the forecast of 205k. The retail sales for April matched the forecasted change of 0.5% (MoM), while the retail sales ex-autos beat the forecasted (MoM) change of 0.6%, with a change of 0.7%.

On Wednesday, the producer price index for April came in stronger than expected, with 1.4%m versus a forecast of 0.5%. The (YoY) equivalent also beat the estimated change of 4.9%, with a change of 6%. The producer price index ex-food and energy for the period outshone the forecasted (MoM) and (YoY) changes of 0.3% and 4.3%, respectively, with changes of 1% and 5.2%.

Earlier in the week, the US consumer price index for April beat the expectation of 3.7% with 3.8% (YoY). The (MoM) equivalent matched the forecast of 0.6%. On the other hand, the consumer price index ex-food and energy outshone both the (MoM) and (YoY) forecasts of 0.3% and 2.7%, respectively, with 0.4% and 2.8%.

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

Technically, the AUD/USD currency pair trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.7212 or lower to 0.7185. On the other hand, the bulls will look to pounce on profits at about 0.7265 or higher at 0.7292.

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 edges closer to overbought conditions.

Therefore, the bulls will look to extend the current rally towards 0.7317 or higher to 0.7393. On the other hand, the bears will look to pounce on pullbacks at about 0.7170 or lower at 0.7095.