AUD/USD Bounces Off Weekly Lows To Trade At About 0.7044

On Thursday, the AUD/USD currency pair bounced back from the current week’s lows of about 0.6979 to trade at 0.7044. The currency pair trades within a descending channel formation in the 60-minute chart.

Thursday’s rebound pushed the pair slightly above the 100-hour moving average line. However, the currency pair pulled back on Friday to avoid rallying into 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 the US market. On Thursday, the US producer price index for May outperformed the (MoM) expectation of 0.7%, with 1.1%. The (YoY) equivalent also beat the estimate of 6.4%, with 6.5%. 

On the other hand, the producer price index ex-food and energy fell short of the forecasted (MoM) and (YoY) changes of 0.5% and 5.4%, respectively, with changes of 0.4% and 4.9%. Elsewhere, the initial jobless claims for last week increased to 229k, up from the preceding week’s equivalent of 225k, missing the forecasted claim count of 219k.

On Wednesday, the US consumer price index for May matched the expected (MoM) and (YoY) changes of 0.5% and 4.2%, respectively. On the other hand, the consumer price index ex-food and energy fell short of the forecasted (MoM) change of 0.3%, with a change of 0.2%. The (YoY) equivalent matched the forecasted change of 2.9%. 

Elsewhere, the US monthly budget statement for May missed the expectation of $-275 billion, with $-293 billion, down from the previous month’s equivalent of $215 billion.

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

Technically, the AUD/USD currency pair trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the latest rebound towards 0.7096 or higher to 0.7146. On the other hand, the bears will look to pounce on profits at about 0.6979 or lower at 0.6923.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within a descending channel formation. The 14-day RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to stretch the current run of declines toward 0.6939 or lower to 0.6828. On the other hand, the bulls will look to pounce on rebounds at about 0.7165 or higher at 0.7271.