#AUDUSD @ 068594 The stays positive, although off the day’s highs, Pivot Orderbook analysis

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE and login below to read further [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• The AUD/USD stays positive, although off the day’s highs.
• Fed’s Mester: Expects the Federal Funds Rate (FFR) to end at around 4% in 2023.
• Mixed US economic data, a tailwind for the AUD/USD.

The pair currently trades last at 0.68594.

The previous day high was 0.6957 while the previous day low was 0.6845. The daily 38.2% Fib levels comes at 0.6888, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6914, expected to provide resistance.

The AUD/USD is almost flat, though off the day’s highs after hitting a daily high above the 0.6900 mark. Factors like risk aversion courtesy of month-end flows, alongside Fed speakers reiterating the need to get into the restrictive mode. At the time of writing, the AUD/USD is trading at 0.6858, just above its opening price.

US equities remain heavy due to risk-off. Fed policymakers continue to grab the spotlight. On Wednesday, Loretta Mester expressed that rates in the US need to be above 4% by the next year while adding that she does not estimate rate cuts in the next year. She added that recession fears had risen but are not part of her baseline.

Data-wise, the US economic calendar was light, though it featured the August ADP Employment Change, the first one, after pausing due to some changes made to the survey. Private hirings rose by 132K less than July’s 270K. Later, the Chicago PMI for August increased more than estimated, topping 52.2 vs. 52 expected by analysts.

Meanwhile, on the Australian side, the Australian Construction Work Done for the second quarter, plunged by 3.8% QoQ vs. estimates of a 0.9% expansion.

Analysts at ANZ said, “The weakness was widespread across states and sectors. This raises concerns that construction activity will not be as strong as we had expected this year, despite the extensive pipelines of work yet to be done, particularly across the residential and infrastructure sectors. Demand is still there, capacity utilization in the industry is running well above average, but supply constraints don’t explain the extent of the weakness in Q2.

The Australian economic docket will feature the S&P Global Manufacturing PMI alongside the AIG Manufacturing Index, both readings expected to slow down. On the US front, the calendar will feature unemployment claims, the S&P Global PMI, and, most importantly, the ISM Manufacturing PMI.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6858 at the time of writing. Pair opened at 0.6853 and is trading with a change of 0.07 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6961, 50 SMA 0.6913, 100 SMA @ 0.7016 and 200 SMA @ 0.7129.

The previous day high was 0.6957 while the previous day low was 0.6845. The daily 38.2% Fib levels comes at 0.6888, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6914, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6813, 0.6773, 0.6701
• Pivot resistance is noted at 0.6925, 0.6997, 0.7037

[/s2If]
Join Our Telegram Group