#AUDUSD @ 068347 has sensed buying interest after slipping below the round-level support of 06800, Pivot Orderbook analysis

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• AUD/USD has sensed buying interest after slipping below the round-level support of 0.6800.
• Caixin Manufacturing PMI has landed lower at 49.5 vs. expectations of 50.2.
• The DXY is broadly firmer despite lower consensus for US ISM Manufacturing PMI.

The pair currently trades last at 0.68347.

The previous day high was 0.6905 while the previous day low was 0.6835. The daily 38.2% Fib levels comes at 0.6862, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6878, expected to provide resistance.

The AUD/USD pair has witnessed a decent buying interest below 0.6800 in the early European session. The asset is attempting a break above its prior high volume area, which is in a narrow range of 0.6805-0.6822. On a broader note, the pair witnessed a perpendicular downside move after surrendering the immediate support of 0.6840.

The major has attracted bids despite the release of the downbeat Caixin Manufacturing PMI data. The economic data has been trimmed to 49.5 against the consensus of 50.2 and the prior release of 50.4. The Chinese economy is facing the headwinds of a resurgence in Covid-19 cases, and lockdown curbs by the Chinese administration have soared recession fears.

It is worth noting that Australia is a leading trading partner of China and dismal Chinese economic activities could put significant pressure on the aussie dollar.

Meanwhile, the US dollar index (DXY) displays signs of exhaustion as the asset has failed to sustain above 109.10. However, the upside remains favored as the Federal Reserve (Fed) seems bound to hike interest rates in September to stabilise prices. In today’s session, the release of the US ISM Manufacturing PMI data holds significant importance. August manufacturing activities are seen lower at 52.0 vs. 52.8 reported earlier.

On the Aussie front, investors are awaiting the announcement of the interest rate decision by the Reserve Bank of Australia (RBA), which is due next week. RBA Governor Philip Lowe is expected to announce a fourth consecutive 50 basis points (bps) hike in its Official Cash Rate (OCR).

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6823 at the time of writing. Pair opened at 0.6841 and is trading with a change of -0.26 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6956, 50 SMA 0.6911, 100 SMA @ 0.701 and 200 SMA @ 0.7127.

The previous day high was 0.6905 while the previous day low was 0.6835. The daily 38.2% Fib levels comes at 0.6862, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6878, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6816, 0.679, 0.6746
• Pivot resistance is noted at 0.6886, 0.6931, 0.6956

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