#AUDUSD @ 0.68968 -imp levels: catches fresh bids on Monday and snaps a five-day losing streak to a multi-week low.

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• AUD/USD catches fresh bids on Monday and snaps a five-day losing streak to a multi-week low.
• The PBoC’s move to lower benchmark rates offers support to the China-proxy Australian dollar.
• Recession fears, sustained USD buying interest should cap gains for the perceived riskier aussie.

The pair currently trades last at 0.68968.

The previous day high was 0.6923 while the previous day low was 0.6858. The daily 38.2% Fib levels comes at 0.6883, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6898, expected to provide resistance.

The AUD/USD pair kicks off the new week on a positive note and snaps a five-day losing streak to a nearly one-month low touched on Friday. The pair maintains its bid tone through the early European session, albeit struggles to find acceptance or build on the momentum beyond the 0.6900 round-figure mark.

The People’s Bank of China (PBoC) lowered its benchmark rates for a second consecutive week in a bid to support a slowing economy. This, in turn, offers some support to the China-proxy Australian dollar and prompts some short-covering around the AUD/USD pair. That said, sustained US dollar buying might hold back traders from placing aggressive bullish bets around the major and keep a lid on any meaningful upside, at least for the time being.

The greenback prolongs its one-and-half-week strong upward trajectory and climbs to the highest level since mid-July amid hawkish Fed expectations. The recent comments by several Fed officials suggested that the US central bank will stick to its policy tightening path. This, along with a generally weaker tone around the equity markets, continues to underpin the safe-haven buck and should act as a headwind for the risk-sensitive aussie.

Hence, it would be prudent to wait for strong follow-through buying before confirming that the recent sharp pullback from a two-month high has run its course and positioning for any further gains. In the absence of any major market-moving US economic releases on Monday, the AUD/USD pair remains at the mercy of the USD price dynamics. Traders would further take cues from the broader risk sentiment to grab short-term opportunities.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6898 at the time of writing. Pair opened at 0.6869 and is trading with a change of 0.42 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6982, 50 SMA 0.6919, 100 SMA @ 0.7057 and 200 SMA @ 0.7142.

The previous day high was 0.6923 while the previous day low was 0.6858. The daily 38.2% Fib levels comes at 0.6883, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6898, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6844, 0.6818, 0.6779
• Pivot resistance is noted at 0.6908, 0.6948, 0.6973

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