On Thursday, the AUD/USD currency pair pulled back from the session highs of about 0.7023 to trade at about 0.7002. The currency pair trades within a sideways channel formation on the 60-minute chart.
The pair has now fallen to trade around the 100-hour moving average line. However, the currency pair still has plenty of room left to run before reaching 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. On Thursday, Australia’s trade balance for September outperformed the (MoM) forecast of 1,200 million, with 2,826 million, up from the previous month’s equivalent of 184 million. Exports grew by 2.3% (MoM), while imports fell by 3.3%.
Earlier in the week, the S&P Global Composite PMI for October outperformed the forecast reading of 47.7, with a reading of 48.2, up from 47.7. The S&P Global Services PMI for the period also outshone the forecast of 47.8, with a reading of 48.5, up from the preceding month’s equivalent of 47.8. The Reserve Bank of Australia raised the base interest rate by 25 basis points to 4.85%, up from 4.6%, as expected.
In the US, the initial jobless claims for last week fell to 189k, down from the previous week’s equivalent of 195k, below the forecast claim count of 196k. The preliminary nonfarm productivity for Q3 also came in better than expected, with a change of 3.6% versus a forecast of 2.5%.
On the other hand, the preliminary unit labor costs for the quarter fell short of the forecast change of 0.6%, with a change of -0.7%. Earlier in the week, the US ISM Services PMI for October missed the expectation of 54.8, with a reading of 54.5, down from 54.9 in September.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair trades within a sideways channel formation on the 60-minut chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards 0.6977 or lower, down to 0.6956. On the other hand, the bulls will look to pounce on profits at about 0.7023 or higher, up to 0.7044.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair trades within an ascending channel formation. However, the 14-hour RSI has recently pulled back to move closer to oversold conditions.
Therefore, the bears will look to extend the current pullback towards 0.6936 or lower, down to 0.6865. On the other hand, the bulls will look to pounce on extended gains at about 0.7067 or higher, up to 0.7137.
