On Friday, the AUD/USD currency pair pulled back from the weekly highs of about 0.6595 to trade at about 0.6578. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade a few levels above the 100-hour moving average line. Friday’s pullback prevented the currency 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 trades during a relatively busy period in both markets. In Australia, the Reserve Bank of Australia chose to keep the base interest rate unchanged at 3.85%. The market was expecting a rate cut of 25 basis points to 3.6%. The ANZ job advertisements for June grew by 1.8% compared to a decline of 0.6% in the previous period.

In the U.S., the initial jobless claims for the week ending July 4 came in lower than expected, with 227k versus a forecast of 235k, down from the previous week’s equivalent of 233k. The continuing claims for the preceding week also beat the forecast of 1.98 million with 1.965 million, up from 1.955 million.

On the other hand, wholesale inventories for May matched the forecasted change of -0.3%, the same as the previous period, while the NFIB business optimism index for June fell short of the forecasted reading of 98.7, with a reading of 98.6, down from the 98.8 in May. 

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

Technically, the AUD/USD currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 0.6559 or lower to 0.6541. On the other hand, the bulls will look to ride the current rally towards 0.6595 or higher to 0.6613.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair also trades within an ascending channel formation. The 14-day RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to extend the current bull run towards 0.6679 or higher to 0.6785. On the other hand, the bears will look to pounce on pullbacks at about 0.6477 or lower at 0.6375.