#AUDUSD @ 0.66929 bounces off two-month low as RBA’s Lowe defends interest rate hike. (Pivot Orderbook analysis)

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• AUD/USD bounces off two-month low as RBA’s Lowe defends interest rate hike.
• Early-day retreat in yields also underpins corrective bounce from multi-day low.
• Fears of Fed’s aggression join China-linked woes to keep bears hopeful.

The pair currently trades last at 0.66929.

The previous day high was 0.676 while the previous day low was 0.6705. The daily 38.2% Fib levels comes at 0.6739, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6726, expected to provide resistance.

AUD/USD licks its wounds around the yearly low near 0.6680 as Reserve Bank of Australia (RBA) Governor justifies the latest rate hikes during the Testimony in front of the Aussie parliament. Also challenging the pair bears is the retreat in the US Treasury yields amid the day-start consolidation moves on early Friday.

“Now that inflation is as high as it is, we need to make sure that inflation returns to target in a reasonable time,” said RBA’s Lowe in the latest testimony. The policymaker also mentioned that Australia in much better position than Fed because wages still contained.

Elsewhere, the US 10-year Treasury yields dropped 1.2 basis points to 3.447% after rising 1.38% the previous day.

Even so, the S&P 500 Futures drop 0.65% intraday by the press time and portrays the risk-off mood, which in turn keeps AUD/USD bears hopeful. Also favoring the Aussie pair sellers are the hawkish Fed bets. That said, the market prices in the Fed’s 0.75% and 1.0% rate hikes in the next week’s Federal Open Market Committee (FOMC), the CME’s FedWatch Tool.

It’s worth noting that fears of China’s slowdown and the European energy crisis join firmer US data to escalate the market’s rush towards the US dollar and weigh on the risk barometer AUD/USD.

Moving on, China’s monthly data dump including the Industrial Production, Retail Sales and housing numbers for August could offer immediate directions. Following that, preliminary readings of the Michigan Consumer Sentiment Index (CSI) will be crucial for nearby directions.

AUD/USD recovery remains elusive unless crossing the 50-DMA level around 0.6890.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6691 at the time of writing. Pair opened at 0.6749 and is trading with a change of -0.86% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6844, 50 SMA 0.6894, 100 SMA @ 0.6959 and 200 SMA @ 0.7111.

The previous day high was 0.676 while the previous day low was 0.6705. The daily 38.2% Fib levels comes at 0.6739, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6726, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6716, 0.6683, 0.6661
• Pivot resistance is noted at 0.6771, 0.6793, 0.6826

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