#AUDUSD @ 0.67297 stages an intraday bounce from sub-0.6700 levels touched earlier this Wednesday. (Pivot Orderbook analysis)

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• AUD/USD stages an intraday bounce from sub-0.6700 levels touched earlier this Wednesday.
• Retreating US bond yields force the USD to consolidate its recent gains to a two-decade high.
• A positive risk tone also undermines the bucks and offers support to the risk-sensitive aussie.

The pair currently trades last at 0.67297.

The previous day high was 0.6833 while the previous day low was 0.6727. The daily 38.2% Fib levels comes at 0.6767, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6793, expected to provide resistance.

The AUD/USD pair recovers its intraday losses to sub-0.6700 levels, or the lowest level since July 14 and climbs to the top end of its daily range during the first half of the European session. The pair is currently trading around the 0.6730-0.6735 region, though any meaningful recovery still seems elusive.

The US dollar now seems to have entered a bullish consolidation phase amid a modest pullback in the US Treasury bond yields. This, along with a positive risk tone undermines the safe-haven greenback and offers some support to the risk-sensitive aussie. That said, growing worries about a deeper economic downturn should keep a lid on any optimistic move in the markets. Apart from this, hawkish Fed expectations might continue to act as a tailwind for the buck and cap any attempted recovery for the AUD/USD pair.

Investors seem convinced that the US central bank tighten its monetary policy more aggressively to tame inflation and have been pricing in a 75 bps rate hike at the September meeting. Moreover, the prospects for rapid interest rate hikes, along with the economic headwinds stemming from fresh COVID-19 curbs in China and the ongoing war in Ukraine, have been fueling recession fears. This, in turn, suggests that the path of least resistance for the AUD/USD pair is to the downside and attempted recovery could get sold into.

There isn’t any major market-moving economic data due for release from the US on Wednesday. Hence, the focus will be on speeches by Fed officials later during the early North American session. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to the AUD/USD pair. Apart from this, traders might take cues from the broader risk sentiment to grab short-term opportunities around the major.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6848 at the time of writing. Pair opened at 0.6735 and is trading with a change of 1.68 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6922, 50 SMA 0.69, 100 SMA @ 0.6986 and 200 SMA @ 0.712.

The previous day high was 0.6833 while the previous day low was 0.6727. The daily 38.2% Fib levels comes at 0.6767, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6793, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6697, 0.6659, 0.6591
• Pivot resistance is noted at 0.6803, 0.6871, 0.6909

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