The AUD/USD currency pair on Friday extended gains to the current weekly highs of about 0.6700 before pulling back to 0.6687. The currency pair appears to be trading within a sharply ascending channel formation in the 60-min chart.

The currency pair has now advanced to trade above the 100-hour moving average line. However, Friday’s late pullback prevented the currency pair from rallying deeper into the overbought 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 the US market. On Friday, the US nonfarm payrolls for June missed the expected job count of 225k with a tally of 209k. On the other hand, the average hourly wage growth for the month outperformed the (MoM) expectation of 0.3% with a change of 0.4%. The (YoY) equivalent also beat the estimate of 4.2% with a change of 4.4%. The unemployment rate of the period fell to 3.6% down from 3.7% in May in line with estimates.

In Australia, the Reserve Bank of Australia kept the base interest rate unchanged at 4.1% compared to an expectation of 4.35%. The S&P Global Services PMI for June missed the expected reading of 50.7 with a reading of 50.3. On the other hand, building permits for May outperformed the expectation of 2% with a change of 20.6% (MoM). The trade balance for May also outshone the forecasted balance of 10,500 million with a balance of 11,791 million.

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

Technically, the AUD/USD currency pair appears to be trading within a sharply 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 stretch the current run of gains towards 0.6700 or higher to 0.6718. On the other hand, the bears will look to pounce on pullbacks at about 0.6669 or lower at 0.6652.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current decline towards 0.6573 or lower to 0.6462. On the other hand, the bulls will be looking to pounce for profits at about 0.6794 or higher at 0.6896.