The AUD/USD currency pair on Friday bounced back of monthly lows to top 0.7281 after plunging earlier on in the week. The had pulled back off yearly highs. Friday’s rebound pushed it back to trade within the ascending channel in the 60-min chart. 

It now trades just below the 100-hour and the 200-hour SMA lines. It has since recovered from oversold levels of the 14-hour RSi to trade within the normal trading range.

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 the US and Australian markets. On Friday, Australia’s seasonally-adjusted retail sales for July missed the (MoM) expectation of 3.3% with a change of 3.2%. Earlier in the week, the Q2 Gross Domestic Product for Australia missed the (QoQ) expectation of -6% with -7%. It also cams short on an annualized basis with -6.3% versus an expected change of -5.3%. The Reserve Bank of Australia also voted at the start of the week to keep the base interest rate unchanged at 0.25%.

In the US, the non-farm payrolls for August missed the expectation of 1.4 million jobs with 1.371 million. Average wage growth for the month posted a (YoY) change 4.7% versus an expected growth of 4.5% while the unemployment rate edged lower to 8.4% beating the expected level of 9.8%. The labor force participation rate inched higher to 61.7% beating the expectation of 61.4%. The ISM Services PMI missed expectations with 56.9 versus an estimate of 57 while the ISM Manufacturing PMI beat 54.5 with 56.

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

Technically, the AUD/USD currency pair appears to be trading within a slightly ascending channel in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment.

The bulls will be targeting short-term profits at around 0.7311 or higher at 0.7352. On the other hand, the bears will be looking to build on the recent pullback by targeting profits at around 0.7248 or lower at 0.7198.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a sharply rising channel. This indicates a strong long-term bullish bias in the market sentiment. The pair has skyrocketed to perch well above the current levels of the 100-day and the 200-day SMA lines.

The bulls will be looking to pounce for long-term profits at around 0.7400, 0.7450, or higher at 0.7696. On the other hand, the bears will target profits at around 0.7128, 0.6991, or lower at 0.6820.