#AUDUSD @ 0.68050 scales higher for the third straight day and climbs to a fresh multi-month high. (Pivot Orderbook analysis)

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• AUD/USD scales higher for the third straight day and climbs to a fresh multi-month high.
• Dovish remarks by Fed Chair Powell keep the USD depressed and offers some support.
• China’s COVID-19 woes turn out to be the only factor capping the upside for the major.

The pair currently trades last at 0.68050.

The previous day high was 0.6801 while the previous day low was 0.667. The daily 38.2% Fib levels comes at 0.6751, expected to provide support. Similarly, the daily 61.8% fib level is at 0.672, expected to provide support.

The AUD/USD pair gains traction for the third successive day on Thursday and maintains its bid tone through the first half of the European session. The pair, however, trims a part of its intraday gains and retreats to the 0.6815-0.6810 region during the first half of the European session.

The US Dollar languishes near a multi-month low in the wake of the overnight dovish comments by Federal Reserve Chair Jerome Powell and acts as a tailwind for the AUD/USD pair. In fact, Powell sent a clear message that the US central bank will soften its stance and said that it was time to moderate the pace of interest rate hikes. This leads to a further decline in the US Treasury bond yields and continues to weigh on the greenback.

Apart from this, a positive tone around the equity markets is seen as another factor undermining the safe-haven buck and benefitting the risk-sensitive Aussie. The AUD/USD bulls further took cues from a slight improvement in China’s Caixin Manufacturing PMI, which unexpectedly rose to 49.4 in November from 49.2 in the previous month. The reading, however, marks the fourth successive monthly contraction amid widespread COVID-19 curbs.

This might keep a lid on any optimistic move in the markets and act as a headwind for the AUD/USD pair. That said, the underlying bearish sentiment surrounding the USD, along with a sustained breakout through the 0.6755-0.6765 horizontal resistance, supports prospects for additional gains. Hence, any meaningful pullback below the 0.6800 mark might still be seen as a buying opportunity and is more likely to remain limited.

Market participants now look to Thursday’s US economic docket, highlighting the release of the Fed’s preferred inflation gauge – the Core PCE Price Index – and ISM Manufacturing PMI. This, along with the US bond yields and the broader risk sentiment, will influence the USD price dynamics and provide some meaningful impetus to the AUD/USD pair.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6816 at the time of writing. Pair opened at 0.6788 and is trading with a change of 0.41 % .

The pair is trading above its 20 Daily moving average @ 0.6634, above its 50 Daily moving average @ 0.6491 , above its 100 Daily moving average @ 0.6687 and below its 200 Daily moving average @ 0.6928

The previous day high was 0.6801 while the previous day low was 0.667. The daily 38.2% Fib levels comes at 0.6751, expected to provide support. Similarly, the daily 61.8% fib level is at 0.672, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6705, 0.6622, 0.6575
• Pivot resistance is noted at 0.6836, 0.6884, 0.6966

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