AUD/USD Slumps to New Multi-Year Lows of About 0.6511

The AUD/USD currency pair on Friday plummeted to new multi-year lows of about 0.6511 before bouncing back late on to trade at 0.6527. 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 several levels below the 100-hour moving average line. As a result, the currency pair sunk to the oversold conditions of the 14-hour RSI before making a late rebound.

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 Australian preliminary S&P Global Services PMI for September outperformed the expectation of 47.7 with 50.4. On the other hand, the Manufacturing PMI missed the forecast of 54 with 53.9, while the PMI composite (without forecast), edged slightly higher to 50.8 up from 50.2.

In the US, the preliminary S&P Global Manufacturing PMI outperformed the expectation of 51.1 with 51.8. The Services and Composite PMIs also outshone estimates. On Thursday, the initial jobless claims beat the forecasted claim count of 218k with a tally of 213k, whereas the continuing claims for the [receding week beat 1.4 million with a tally of 1.379 million. Earlier in the week, the Federal Reserve raised the base interest rate by 75 basis points to 3.25% up from 2.5%.

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

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

Therefore, the bears will be looking to extend the current downward movement towards 0.6475 or lower to 0.6422. On the other hand, the bulls will be targeting potential rebounds at about 0.6574 or higher at 0.6625

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair seems 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 targeting long-term profits at about 0.6348 or lower at 0.6160. On the other hand, the bulls will be looking to pounce on potential rebounds at about 0.6712 or higher at 0.6907.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.