#AUDUSD @ 0.67279 has slipped sharply (Pivot Orderbook analysis)

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• AUD/USD has slipped sharply

The pair currently trades last at 0.67279.

The previous day high was 0.6771 while the previous day low was 0.6699. The daily 38.2% Fib levels comes at 0.6743, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6726, expected to provide support.

The AUD/USD pair has plunged to near 0.6700 after surrendering the critical support of 0.6734. The asset has witnessed a vertical drop as Reserve Bank of Australia (RBA) Governor Philip Lowe has favored for slowdown the pace of hiking the Official Cash Rate (OCR). Also, RBA policymaker sees resilience in consumer spending after remaining lower due to higher inflation rate.

On Tuesday, the RBA announced a fourth consecutive 50 basis points (bps) rate hike and elevated the Official Cash Rate (OCR) to 2.85%. Apart from that, RBA Lowe cited that the central bank sees interest rates at 3.85% and the inflation rate will top around 7%.

In the early Tokyo session, the asset witnessed a steep fall after the release of the Australian trade data. The commodity-linked currency reported a decline in monthly exports data by 9.9% against an expansion by 5.1%. Also, imports have accelerated by 5.2% vs. 0.7% the prior release. The Trade Balance has trimmed dramatically to 8,733M against the expectation of 14,500M. It is worth noting that the Australian economy is highly sensitive to external trade data and a significant decline in the same is critical for the aussie bulls.

Meanwhile, the US dollar index (DXY) has turned sideways after a rebound move to near 109.60. The asset is expected to continue its lackluster movement further as investors are awaiting the speech from Federal Reserve (Fed) chair Jerome Powell. As the price rise index is highly deviated from the desired rate, Fed Powell will continue its ‘hawkish’ stance on interest rates guidance. Apart from that, a third consecutive rate hike by 75 bps could be discussed for September monetary policy meeting.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6848 at the time of writing. Pair opened at 0.6769 and is trading with a change of 1.17 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6905, 50 SMA 0.6898, 100 SMA @ 0.698 and 200 SMA @ 0.7119.

The previous day high was 0.6771 while the previous day low was 0.6699. The daily 38.2% Fib levels comes at 0.6743, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6726, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6722, 0.6674, 0.665
• Pivot resistance is noted at 0.6794, 0.6819, 0.6866

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