On Friday, the AUD/USD currency pair bounced back from the session lows of about 0.7171 to retest this week’s highs of 0.7207. The currency pair trades within an ascending channel formation on the 60-minute chart.
The pair continues to trade a few levels above the 100-hour moving average line after the rebound. The currency pair has recently pulled back to recover from the overbought 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 Friday, the US nonfarm payrolls for August rose to 162k, up from the previous month’s equivalent of 21k, beating the forecast of 56k.
However, the unemployment rate for the month remained unchanged from July at 4.1%, in line with expectations. The average hourly wage growth for the period matched the forecast (MoM) change of 0.3%. On the other hand, the (YoY) equivalent outshone the estimate of 3%, with a change of 3.1%.
On Thursday, the US ISM Services PMI for August outperformed the expectation of 54.3, with a reading of 55.4, up from the previous month’s equivalent of 54.1. However, the S&P Global Composite PMI for the period remained unchanged at 56, as expected. On the other hand, the initial jobless claims for last week rose to 206k, up from 204k in the preceding week, missing the forecast of 205k.
In Australia, the gross domestic product for Q2 outperformed the expected (QoQ) change of 0.3%, with a change of 0.4%. The (YoY) equivalent also exceeded the forecast of 1.8%, with a change of 2.1%. The S&P Global Composite PMI for August came in stronger than expected, at 52.7 versus a forecast of 52.5, while the S&P Global Services PMI beat 52.9, with a reading of 53.2.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will look to extend the latest pullback towards 0.7171, or lower to 0.7132. On the other hand, the bulls will look to pounce on profits at about 0.7244, or higher at 0.7281.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair also trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.
Therefore, the bulls will look to stretch the current run of gains toward 0.7279 or higher, to 0.7355. On the other hand, the bears will look to pounce on pullbacks at about 0.7121, or lower at 0.7046.
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