The AUD/USD currency pair on Friday pulled back off the current weekly highs of about 0.6500 to trade at about 0.6429. The currency pair appears to be trading within a sharply descending channel formation in the 60-min chart.

The pair has now plummeted to trade closer to the 100-hour moving average line. As a result, the currency pair has now moved from the overbought levels of the 14-hour RSI back to the normal trading zone.

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 personal consumption expenditures price index for August missed the expected (MoM) change of 0.2% with a change of 0.1%. The (YoY) equivalent was in line with the estimate of 3.9%. On the other hand, the personal consumption expenditures price index for the month missed the (MoM) forecast of 0.5% with a change of 0.4%, while the (YoY) equivalent matched the expected change of 3.5%. 

Personal income and spending for the period matched the (MoM) expectations of 0.4% and 0.4%, respectively. On the other hand, the Chicago purchasing managers’s index for September missed the expectation of 47.6 with 44.1. The Michigan Consumer Sentiment for the month beat the forecasted reading of 67.7 with a reading of 68.1, while the UoM 5-year consumer inflation expectations for September outshone 2.7% with 2.8%, up from 2.7% in the previous update.

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

Technically, the AUD/USD currency pair appears to be trading within a sharply descending channel formation in the 60-minute chart. The hourly MACD also seems to support a bearish case after completing a downward crossover.

Therefore, the bears will be looking to extend the current pullbacks toward 0.6414 or lower to 0.6399. On the other hand, the bulls will be targeting short-term profits at about 0.643 or higher at 0.6457.

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. The daily MACD also seems to be lacking momentum despite slightly remaining bullish.

Therefore, the bulls will look to seize control of the pair by targeting profits at about 0.6481 or higher at 0.6527. On the other hand, the bears will look to pounce on profits at about 0.6386 or lower at 0.6329.