#AUDUSD @ 0.65875 has printed a fresh day’s low at 0.6587 as USD Index prepares for a fresh upside. (Pivot Orderbook analysis)

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• AUD/USD has printed a fresh day’s low at 0.6587 as USD Index prepares for a fresh upside.
• The street is holding mixed views on the interest rate decision by the Fed for June’s monetary policy meeting.
• The RBA is expected to raise the OCR further as Australian inflation has turned stubborn again.

The pair currently trades last at 0.65875.

The previous day high was 0.6639 while the previous day low was 0.6565. The daily 38.2% Fib levels comes at 0.6611, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6593, expected to provide resistance.

The AUD/USD has refreshed its day’s low at 0.6587 in the London session. The Aussie asset has witnessed immense selling pressure despite the street holding mixed views on the interest rate decision by the Federal Reserve (Fed) for June’s monetary policy meeting.

S&P500 futures are holding nominal gains in the European session, indicating that the risk appetite theme is being underpinned by the market participants. The overall upbeat market mood seems biased toward the US equities and not supporting the risk-sensitive currencies. The US Dollar Index (DXY) has turned sideways after printing a fresh day’s high at 104.32. The USD Index is expected to extend its upside journey amid the absence of signals of exhaustion in the upside momentum.

Meanwhile, the street is divided about Fed’s interest rate policy stance. A scrutiny of the Friday’s Nonfarm Payrolls (NFP) report showed that the Unemployment Rate jumped to its seven-month high at 3.7%. Contrary to that, additions of fresh payrolls in the United States labor market in May were at 339K, significantly higher than the estimates of 190K. The situation is a little surprising on whether to consider consistent solid payroll additions and support more rate hikes or pause the same due to a sudden rise in the jobless rate.

On the Australian Dollar front, the interest rate decision by the Reserve Bank of Australia (RBA) will remain in focus. Considering the fact that Australian inflation has turned stubborn again as the monthly Consumer Price Index (CPI) indicator rose to 6.8% in April from March’s 6.3% figure, one more interest rate hike of 25 basis points (bps) which will push the Official Cash Rate (OCR) to 4.10%, cannot be ruled out.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.659 at the time of writing. Pair opened at 0.661 and is trading with a change of -0.3 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6626, 50 SMA 0.6664, 100 SMA @ 0.6755 and 200 SMA @ 0.6695.

The previous day high was 0.6639 while the previous day low was 0.6565. The daily 38.2% Fib levels comes at 0.6611, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6593, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6571, 0.6531, 0.6497
• Pivot resistance is noted at 0.6644, 0.6678, 0.6718

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