On Thursday, the AUD/USD currency pair pulled back from the session highs of about 0.6835 to trade at about 0.6805. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair continues to trade several levels below the 100-hour moving average line after the pullback. As a result, the currency pair has since plummeted into the oversold 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 Westpac Consumer Confidence for November fell by 2.7%, compared to a decline of 4.7% in October. On the other hand, consumer inflation expectations for November remained unchanged at 5.3%.
In the US, the initial jobless claims for last week came in significantly higher than expected, at 200k versus a forecast of 195k, up from the previous week’s claim count of 191k. On the other hand, the monthly budget statement for October fell to $-404.1 billion, down from the previous month’s equivalent of $27 billion, missing the forecast of $-298.6 billion. Elsewhere, existing home sales change for October dropped to -5.5%, down from 1% in September.
Earlier in the week, the US consumer price index for October came in higher than expected, at 0.4% (MoM) versus a forecast of 0.3%, down from the previous month’s equivalent of 0.6%. On the other hand, the consumer price index ex-food and energy remained steady at 0.3% (MoM), above the forecast change of 0.2%.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair trades within a descending channel formation on the 60-minute chart. The 14-hour RSI also supports a bearish bias after falling into oversold conditions.
Therefore, the bears will look to stretch the current pullback towards 0.6774 or lower, down to 0.6741. On the other hand, the bulls will look to pounce on rebounds at about 0.6835 or higher, up to 0.6865.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair trades within a slightly descending channel formation. The 14-day RSI also supports a long-term bearish bias as it edges closer to oversold conditions.
Therefore, the bears will look to stretch the current pullback towards 0.6668 or lower, down to 0.6522. On the other hand, the bulls will look to pounce on rebounds at about 0.6936 or higher, up to 0.7070.
