#AUDUSD @ 0.68391 has been accelerated above 0.6850 amid a cheerful market mood. (Pivot Orderbook analysis)

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• AUD/USD has been accelerated above 0.6850 amid a cheerful market mood.
• A third consecutive 75 bps rate hike is expected from the RBA.
• Fed’s Evans sees a higher interest rate pace but has favored a deceleration in the interest rate hike pace.

The pair currently trades last at 0.68391.

The previous day high was 0.6836 while the previous day low was 0.6742. The daily 38.2% Fib levels comes at 0.6778, expected to provide support. Similarly, the daily 61.8% fib level is at 0.68, expected to provide support.

The AUD/USD pair has extended its recovery from 0.6770 to above 0.6850 in the Asian session. The Aussie asset has witnessed stellar buying interest from the market participants as the Reserve Bank of Australia (RBA) is all set to tighten its policy further for bringing price stability.

Apart from the RBA’s monetary policy, a positive market mood has also strengthened the Australian Dollar. A sheer decline in safe-haven’s appeal has dragged the US Dollar Index (DXY) to a fresh five-month low at 104.14. S&P500 futures have turned subdued as Federal Reserve (Fed) policymaker has proposed a higher interest rate peak despite a slowdown in rate pace. This has also brought a significant recovery in the 10-year US Treasury yields to near 3.53%.

Chicago Fed President Charles Evans said on Friday, “We are probably going to have a slightly higher peak to Fed policy rate even as we slow pace of rate hikes,” as reported by Reuters.

On the Australian front, RBA Governor Philip Lowe is set to hike its Official Cash rate (OCR) further to trim the inflation rate. In October month, the Australian Consumer Price Index (CPI) dropped to 6.9% after printing a high of 7.3%. Economists at UOB Group cited that “We are penciling in another 25 basis points (bps) hike at the final monetary policy meeting of the year on 6 Dec, which will take the OCR to 3.10%. This would be the third consecutive 25 bps rate hike by the RBA.

Going forward, investors will keep an eye on Australian Gross Domestic Product (GDP) data, which will release on Wednesday. The Australian economy is likely to deliver a decline in the growth rates to 0.7% and 1.8% on a quarter and an annual basis.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6845 at the time of writing. Pair opened at 0.6804 and is trading with a change of 0.6 % .

The pair is trading above its 20 Daily moving average @ 0.6677, above its 50 Daily moving average @ 0.65 , above its 100 Daily moving average @ 0.6688 and below its 200 Daily moving average @ 0.6924

The previous day high was 0.6836 while the previous day low was 0.6742. The daily 38.2% Fib levels comes at 0.6778, expected to provide support. Similarly, the daily 61.8% fib level is at 0.68, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6752, 0.67, 0.6658
• Pivot resistance is noted at 0.6846, 0.6888, 0.694

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