The AUD/USD currency pair on Thursday plunged to trade at a new weekly low of about 0.7405 after disappointing Australian employment data. The currency pair continues to trade within a descending channel formation amid increased off-risk trading. 

The pair is now pinned several levels below the 100-hour moving average in the 60-min chart. Thursday’s plunge pushed the currency pair closer to the oversold 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, the seasonally adjusted Australian Employment Change for June missed the expectation of 30k with 29.1k. On the other hand, the s.a unemployment rate for the period beat the expectation of 5.5% with 4.9%, down from the previous month’s rate of 5.1%. The consumer inflation expectations for July came in line with expectations at 3.7% down from 4.4% in the previous reading. Earlier in the week, Westpac consumer confidence for July grew 1.5% compared to a decline of 5.2% in the previous period.

In the US, the Philadelphia Fed Manufacturing Survey for July missed the expectation of 28 with 21.9. Initial jobless claims matched the expectation of 360k despite Fed issuing a dovish statement. Earlier in the week, the US PPI ex-food and energy for June outperformed expectations of 5.1% with 5.6% (YoY). The consumer price index for June also beat expectations on all counts.

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

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

The bears will be looking to extend declines towards 0.7384 or lower to 0.7347. On the other hand, the bulls will target potential rebounds at around 0.7460 or higher at 0.7495.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to have recently pulled back after a significant rally. It is now pinned to the 23.60% fib level on the way down. It has also moved closer to oversold conditions in the 14-day RSI.

The bears will look to extend the current pullback towards 0.7228 or lower to the 38.20% fib level at 0.7042. On the other hand, the bulls will target long-term reversals at 0.7584 or higher at 0.7758.