The AUD/USD currency pair on Friday advanced to trade at a new weekly high of about 0.6630 before pulling back to settle at 0.6609. The currency pair continues to trade within an ascending channel formation in the 60-min chart.
The pair has now rallied to trade several levels above the 100-hour moving average line. However, Friday’s late pullback pushed the currency pair off overbought levels and back to the normal trading zone 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 the US market. On Friday, the US jobs data for May outperformed the expected tally of 190k with a tally of 339k. The unemployment rate for the period missed the forecasted rate of 3.5% with a rate of 3.7%, up from 3.5% in April.
On the other hand, the average hourly wage for the month missed the (YoY) expectation of 4.4% with a growth rate of 4.3%, whereas the labour force participation rate outshone the forecasted rate of 62.5% with a rate of 62.6%. Earlier in the week, the initial jobless claims beat the expected claim count of 235k with a tally of 232k, while the ADP Employment change outshone the estimated tally of 170k with a tally of 278k.
In Australia, Home Loans for April missed the expectation of 3% with a change of -3.8%, while investment lending for homes declined by 0.9% compared to an increase of 3.4% in the previous update. Earlier in the week, private capital expenditure for Q1 beat the expected change of 0% with a change of 2.4%, while the RBA commodity index for May outshone the estimate of -25.7% with a change of -22.2%.
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 looking to ride the current wave of gains toward 0.6628 or higher to 0.6648. On the other hand, the bears will be targeting short-term profits at about 0.6592 or lower at 0.6570.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair appears to have recently completed an upward breakout from an ascending channel formation. This indicates a significant change in the market sentiment from bearish to bullish.
Therefore, the bulls will be looking to extend the current rebound towards 0.6737 or higher to 0.6857. On the other hand, the bears will be targeting long-term profits at about 0.6501 or lower at 0.6381.