The AUD/USD currency pair on Friday pulled back off the session highs of about 0.6675 to trade at about 0.6646 following the latest round of data. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

Friday’s late pullback pushed the currency pair below the 100-hour moving average line. This prevented the pair from ascending into the overbought levels of the 14-hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in both markets. On Thursday. Australia’s seasonally adjusted employment change for April missed the expected figure of 15k with a reading of -4.3k. The unemployment rate for the month also rose to 3.7% up from 3.5% in March missing the expected rate of 3.5%, while the participation rate fell slightly to 66.7% down from 66.8% in line with estimates.

In the US, the initial jobless claims for the week ending May 12 beat the expected claim count of 254k with a lower tally of 242k. The continuing claims for the preceding week also came in lower than expected with a tally of 1.799 million compared to a forecast of 1.818 million. Elsewhere, the Philadelphia Fed Manufacturing Survey for May outshone the expected reading of -19.8 with a reading of -10.4. Earlier in the week, building permits for April missed 1.437 million with a tally of 1.416 million, while housing starts beat 1.4 million with a tally of 1.401 million.

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

Technically, the AUD/USD currency pair appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting extended gains at about 0.6675 or higher at 0.6703. On the other hand, the bears will look to extend the current pullback towards 0.6617 or lower to 0.6588.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a sideways channel formation. This indicates a lack of a clear long-term directional bias in the market sentiment.

Therefore, the bears will be targeting potential downward breakouts at about 0.6520 or lower at 0.6394. On the other hand, the bulls will look to pounce on rebounds at about 0.6777 or higher at 0.6898.