#AUDUSD @ 0.69287 -imp levels: is concluding its correction and will advance to reclaim its three-day high at 0.6960.

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• AUD/USD is concluding its correction and will advance to reclaim its three-day high at 0.6960.
• Dismal performance on the PMI front resulted in a steep decline in the DXY.
• Investors have now shifted their focus on US Durable Goods Orders for further guidance.

The pair currently trades last at 0.69287.

The previous day high was 0.6929 while the previous day low was 0.6862. The daily 38.2% Fib levels comes at 0.6903, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6887, expected to provide support.

The AUD/USD pair displayed a correction to near 0.6920 after a stellar rebound from a low of 0.6860. The asset has comfortably established above the critical hurdle of 0.6900 and is likely to recapture its three-day high at 0.6960. The major has strengthened after the release of the dismal Purchasing Managers Index (PMI) data by the US.

A sharp contraction in the US PMI is indicating the consequences of squeezing liquidity from the market. The US Services PMI has contracted dramatically to 44.1 against the forecast of an expansion to 49.2 and the prior release of 47.3. Also, the Manufacturing PMI has contracted to 51.3 from the estimates of 52 and the prior release of 52.2.

Stick to the path of achieving price stability in the economy, the Federal Reserve (Fed) is hiking the borrowing rates with severe momentum. The Fed has elevated its interest rates to 2.25-2.50% from 0-0.25% in its last four monetary policy meetings. And, one can assume the velocity of squeezing liquidity from the market. The unavailability of cheap money for the corporate sector resulted in the selection of ultra-filtered investment projects only and therefore a decline in the PMI data.

Now, investors are focusing on the US Durable Goods Orders data, which are expected to contract to 0.6% from the prior release of 2%. This also indicates a decline in the overall demand and may result in more pressure on the US dollar index (DXY).

On the aussie front, investors have ignored the downbeat Australian PMI numbers and have punished the DXY. The S&P Global Manufacturing PMI slipped sharply to 54.5 vs. expectations of 57.3 and the prior release of 55.7. While the Services PMI data landed lower to 49.6 against the forecasts of 54 and the former figure of 50.9.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6928 at the time of writing. Pair opened at 0.6876 and is trading with a change of 0.76 % .

The pair is trading below its 20 Daily moving average @ 0.6979, above its 50 Daily moving average @ 0.6918 , below its 100 Daily moving average @ 0.705 and below its 200 Daily moving average @ 0.7139

The previous day high was 0.6929 while the previous day low was 0.6862. The daily 38.2% Fib levels comes at 0.6903, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6887, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6849, 0.6821, 0.6781
• Pivot resistance is noted at 0.6917, 0.6957, 0.6984

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