The AUD/USD currency pair on Thursday pulled back off the trendline resistance at 0.6964 to trade at about 0.6903. The currency pair continues to trade within a descending channel formation in the 60-min chart.
The pair now seems to have fallen several levels below the 100-hour moving average line. As a result, the currency pair is getting closer to the oversold conditions 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, the seasonally-adjusted Australian Employment Change for July missed the expected job count of 25k with -40.9k. The workforce participation rate for the period also came short of 66.8% with 66.4%, while the unemployment rate edged lower to 3.4%, down from 3.5% in the previous period, also beating the consensus forecast of 3.5%. Earlier in the week, the Q2 wage price index missed the expected (QoQ) change of 0.8% with 0.7%.
In the US, the initial jobless claims for last week outshone the forecasted claim count of 265k with a lower tally of 250k, while continuing claims narrowly beat 1.438 million with 1.437 million. The preliminary Philadelphia Fed Manufacturing Survey for August came in at 6.2, ahead of the forecasted reading of -5. Earlier in the week, the retail sales control group for July registered a growth of 0.8% versus an expectation of 0.6%, while general retail sales missed 0.1% with 0% (MoM).
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair seems to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be targeting short-term profits ta about 0.6878, or lower at 0.6849. On the other hand, the bulls will be targeting potential rebounds at about 0.6935, or higher at 0.6964.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair seems to have recently pulled back to complete a bearish breakout from an ascending channel formation. This indicates an abrupt change in the market sentiment from bullish to bearish.
Therefore, the bears will be looking to extend the current declines toward 0.6805 or lower to 0.6691. On the other hand, the bulls will be targeting long-term profits at about 0.7029, or higher at 0.7129.