#AUDUSD @ 0.67507 struggles to defend recent gains, retreats from intraday high of late. (Pivot Orderbook analysis)

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• AUD/USD struggles to defend recent gains, retreats from intraday high of late.
• Multiple countries announced special tests for visitors from China amid skepticism over COVID-19 conditions in Beijing.
• Yields portray recession woes, geopolitical headlines add strength to the market fears but holiday season restricts Aussie moves.

The pair currently trades last at 0.67507.

The previous day high was 0.6801 while the previous day low was 0.6719. The daily 38.2% Fib levels comes at 0.677, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6751, expected to provide resistance.

AUD/USD treads water around 0.6750 as it reassesses the optimism surrounding China’s unlock amid Thursday’s sluggish session. Also challenging the Aussie pair buyers during the second positive day are the fears emanating from Russia and upbeat US Treasury yields.

Although the dragon nation announced multiple measures to convince the markets of its ability to overcome the Covid-led economic woes, doubts over Beijing statistics and methods of unlock seem to have challenged the previous optimism. News from Reuters suggesting inconsistent virus details from Beijing and multiple economies announcing fresh testing requirements from China previously weighed on the market sentiment and propelled the US Treasury yields. “China reported three new COVID-related deaths for Tuesday, up from one for Monday – numbers that are inconsistent with what funeral parlors are reporting, as well as with the experience of much less populous countries after they re-opened,” reported Reuters.

That said, the US, South Korea, Japan, Taiwan, Italy and India all of them have recently announced fresh Covid test requirements for visitors from China. Even so, Australia kept the previous policies requiring no extra tests for Chinese travelers.

It should be noted that Russia’s rejection of peace with Ukraine unless it accepts the treaty allowing additional territories joining Moscow weigh on the market sentiment and the AUD/USD prices. On the same line could be the news suggesting Russian forces increased mortar and artillery attacks on the city of Kherson more than six weeks after it was retaken by Ukrainian troops, while also exerting pressure along frontlines in the east, per Reuters.

However, the year-end holiday mood and a light calendar restrict the AUD/USD pair’s immediate moves. While portraying the market conditions, the S&P 500 Futures seesaw around 3,810 whereas the US 10-year Treasury yield makes rounds to 3.87% after rising the most since October 19 the previous day.

To sum up, the AUD/USD strength appears doubtful amid multiple negatives to the sentiment and hence risk catalysts will be important to watch for fresh impulse. Additionally, US Initial Jobless Claims will decorate the economic calendar and should be eyed for extra directions.

Multiple Doji candlesticks in the last few days suggest indecision of the AUD/USD traders. As a result, sustained trading beyond the 21-DMA hurdle surrounding 0.6740 becomes necessary for the bulls to keep the reins.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6748 at the time of writing. Pair opened at 0.6734 and is trading with a change of 0.21 % .

The pair is trading above its 20 Daily moving average @ 0.6739, above its 50 Daily moving average @ 0.6627 , above its 100 Daily moving average @ 0.6649 and below its 200 Daily moving average @ 0.687

The previous day high was 0.6801 while the previous day low was 0.6719. The daily 38.2% Fib levels comes at 0.677, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6751, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6702, 0.667, 0.662
• Pivot resistance is noted at 0.6784, 0.6833, 0.6865

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