AUD/USD Pulls Back Off Weekly Highs To Trade At About 0.6992

On Thursday, the AUD/USD currency pair extended Wednesday’s pullback from the current week’s highs of 0.7023 to trade at 0.6992. 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, despite the pullback. The latest pullback helped the currency pair 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 the US market. On Thursday, the US initial jobless claims for last week came in lower than expected, at 208k versus a forecast of 217k, down from the previous week’s equivalent of 216k. The Philadelphia Fed Manufacturing Survey for July also outperformed the expectation of 13, with a reading of 41.4, up from the previous month’s equivalent of 10.3.

On the other hand, the retail sales for June matched the forecasted (MoM) change of 0.2%. The retail sales control group was also in line with the estimate of 0.5%. On the other hand, the retail sales ex-autos missed the forecasted (MoM) change of -0.1%, with a change of -0.2%. The pending home sales for June also missed the forecast of -0.5%, with a change of -5.4%. 

Earlier in the week, the NY Empire State Manufacturing for July outperformed the expectation of 8.8, with a reading of 15.6, up from the previous month’s equivalent of 5.7. The producer price index for June missed the expected (MoM) and (YoY) rates of 0% and 6.2%, respectively, with -0.3% and 5.5%.

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 current pullback towards 0.6962 or lower to 0.6931. On the other hand, the bulls will look to pounce on rebounds at about 0.7023 or higher at 0.7052.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to pounce on extended rebounds at about 0.7041 or higher at 0.7091. On the other hand, the bears will look to pounce on profits at about 0.6939 or lower at 0.6886.