#AUDUSD @ 0.66343 picks up bids to refresh intraday high amid broad risk-on mood. (Pivot Orderbook analysis)

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• AUD/USD picks up bids to refresh intraday high amid broad risk-on mood.
• US regulators take action and tame fears emanating from Silicon Valley Bank, Signature Bank.
• Upbeat US employment data may weigh on Aussie prices once initial reaction to SVB plan fades.
• Aussie jobs report, RBA Bulleting and US inflation will be in focus for clear directions.

The pair currently trades last at 0.66343.

The previous day high was 0.664 while the previous day low was 0.6564. The daily 38.2% Fib levels comes at 0.6593, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6611, expected to provide support.

AUD/USD portrays the market’s risk-on mood as it prints the biggest daily gains in more than a month, rising 0.90% intraday to refresh daily tops near 0.6635 during early Monday morning in Asia. In doing so, the risk-barometer pair cheers the US authorities’ actions to tame the risks emanating from the Silicon Valley Bank (SVB) and Signature Bank.

Also read: US Treasury Department, Fed unveil action plan on Silicon Valley Bank fallout

That said, US Treasury Department, Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) took joint actions to tame the risks emanating from the SVB and Signature Bank. “All depositors of Silicon Valley Bank and Signature Bank will be fully protected,” said the authorities in a joint statement released a few minutes back. S&P 500 Futures and US Treasury bond yields consolidate the previous day’s losses after the late plan for the US authorities to tame the financial crisis.

Also read: Regulators close Signature bank, announce plan to make depositors whole

It should be noted, however, that the fears of the Aussie pair’s pullback are high amid the fading of the risks emanating from SVB and Signature Bank. The reason could be linked to Friday’s US jobs report. On Friday, United States Nonfarm Payrolls (NFP) grew more than 205K expected to 311K in February, versus 504K (revised), while the Unemployment Rate rose to 3.6% for the said month compared to 3.4% expected and prior. Further, the Average Hourly Earnings rose on YoY but eased on monthly basis for February whereas the Labor Force Participation increased during the stated month.

Although the fears of the Fed hawks’ return and downbeat AUD/USD are high, the Federal Reserve (Fed) officials’ two-week ahead of the monetary policy meeting may probe the bears.

Though, the US Consumer Price Index (CPI) for February, up for publishing on Tuesday, will precede the Retail Sales and preliminary readings of the Michigan Consumer Sentiment Index for March, up for publishing on Wednesday and Friday, will be crucial for traders to watch.

At home, the latest dovish hike of the Reserve Bank of Australia (RBA) may gain attention if Thursday’s headline Aussie employment data and RBA Bulletin print downbeat outcomes.

A sustained upside break of the five-week-old descending resistance line, around 0.6665 by the press time, becomes necessary to recall the AUD/USD bulls.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6637 at the time of writing. Pair opened at 0.6576 and is trading with a change of 0.93% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6777, 50 SMA 0.6885, 100 SMA @ 0.6765 and 200 SMA @ 0.6777.

The previous day high was 0.664 while the previous day low was 0.6564. The daily 38.2% Fib levels comes at 0.6593, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6611, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6547, 0.6517, 0.6471
• Pivot resistance is noted at 0.6623, 0.667, 0.6699

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