#AUDUSD @ 0.68559 -imp levels: will likely display a short-lived pullback on better-than-expected Aussie Retail Sales data.

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• AUD/USD will likely display a short-lived pullback on better-than-expected Aussie Retail Sales data.
• Aussie Retail Sales have landed at 1.3% vs. the consensus of 0.3%
• The DXY has refreshed its two-decade high at 109.32 on soaring risk-off.

The pair currently trades last at 0.68559.

The previous day high was 0.701 while the previous day low was 0.6888. The daily 38.2% Fib levels comes at 0.6934, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6963, expected to provide resistance.

The AUD/USD pair has sensed buying interest near 0.6850 as the Australian Bureau of Statistics has reported upbeat Retail Sales data. The economic data has landed at 1.3%, higher than the consensus and the prior release of 0.3% and 0.2% respectively.

The investing community should be aware of the fact that the Australian economy is facing the wrath of soaring inflation. Price pressures in the Australian economy have reached to 6.1%, which indicates that the households in the Aussie area are already making higher payouts for similar or with limited changes in quantity purchased. The Retail Sales data is upbeat and it could be stated that the overall demand is accelerating in the Australian economy.

On the dollar front, the US dollar index (DXY) is advancing firmly on soured market sentiment. After preferring inflation fix over lower growth forecasts by the Federal Reserve (Fed), the risk-off market mood has underpinned the DXY. The DXY is expected to recapture its two-decade high, recorded on July 14 at 109.29.

Considering the necessary fundamental concepts, the decision of fixing inflation chaos foremost rather than delighting the optimism seems mature. The US inflation rate is skyrocketing, and a one-time exhaustion signal is not enough to provide a sit-back and relaxed situation for Fed policymakers.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6856 at the time of writing. Pair opened at 0.6912 and is trading with a change of -0.81 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.697, 50 SMA 0.6916, 100 SMA @ 0.7028 and 200 SMA @ 0.7133.

The previous day high was 0.701 while the previous day low was 0.6888. The daily 38.2% Fib levels comes at 0.6934, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6963, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6863, 0.6814, 0.6741
• Pivot resistance is noted at 0.6985, 0.7059, 0.7108

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