#AUDUSD @ 0.69556 -imp levels: has witnessed barricades around 0.6970, downside looks favorable ahead of Fed Powell’s speech.

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• AUD/USD has witnessed barricades around 0.6970, downside looks favorable ahead of Fed Powell’s speech.
• Fed’s Powell is expected to sound hawkish on interest rates, keeping in mind the consequences.
• China’s announcement of liquidity infusion may support Australian exports.

The pair currently trades last at 0.69556.

The previous day high was 0.6992 while the previous day low was 0.6899. The daily 38.2% Fib levels comes at 0.6956, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6934, expected to provide support.

The AUD/USD pair has witnessed selling pressures after facing barricades around 0.6970 in the Asian session. The asset is expected to display more losses as the US dollar index (DXY) is expected to pick up significant bids ahead. Investors are expected to underpin the greenback further as odds of a hawkish commentary on interest rates from Federal Reserve (Fed) chair Jerome Powell are advancing firmly.

Mixed responses from the market veterans on Fed’s next move over interest rates kept the DXY on tenterhooks in the past few trading sessions. There were different responses that either Fed should stick to its path of hiking interest rates at a severe pace or it should slow down due to the consequences of a liquidity squeeze in the market.

However, commentary from Reserve Bank of New Zealand (RBNZ)’s Governor Adrian Orr at Jackson Hole Economic Symposium has provided much clarity. As per RBNZ’s Orr, their respective central bank will announce at least a couple of interest rates to safeguard the economy from price pressures, being their foremost priority, to preserve the retail demand. And, in the execution of that, the economic activities will have to bear the slowdown. And, now a similar kind of commentary is expected from Fed’s Powell.

On the Australian front, investors are still in the hangover of the downbeat Aussie PMI data, released on Tuesday. Considering its trade relations, the Chinese economy has announced an infusion of one trillion Chinese Yuan (CNY) in its economy, which may also boost the Australian exports market apart from the Chinese economic activities. It is worth noting that Australia is a leading trading partner of China and growth prospects in China accelerate Australian exports significantly.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6962 at the time of writing. Pair opened at 0.6981 and is trading with a change of -0.27 % .

The pair is trading below its 20 Daily moving average @ 0.6974, above its 50 Daily moving average @ 0.6916 , below its 100 Daily moving average @ 0.7033 and below its 200 Daily moving average @ 0.7134

The previous day high was 0.6992 while the previous day low was 0.6899. The daily 38.2% Fib levels comes at 0.6956, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6934, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6922, 0.6864, 0.6829
• Pivot resistance is noted at 0.7016, 0.7051, 0.7109

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