#AUDUSD @ 0.66756 stays firmer at the highest levels in three weeks, prints five-day uptrend. (Pivot Orderbook analysis)

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• AUD/USD stays firmer at the highest levels in three weeks, prints five-day uptrend.
• RBA’s Lowe backs 0.25% surprise rate hike by citing inflation fears, hints at more rate increase if needed.
• Australia’s Q1 GDP, China monthly trade data eyed for clear directions.
• Mixed Fed clues, previously downbeat data and pre-FOMC blackout prod US Dollar buyers.

The pair currently trades last at 0.66756.

The previous day high was 0.6638 while the previous day low was 0.6579. The daily 38.2% Fib levels comes at 0.6615, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6602, expected to provide support.

AUD/USD justifies hawkish comments from Reserve Bank of Australia (RBA) Governor Philip Lowe, as well as the RBA’s surprise rate lift, as it grinds higher past 0.6650 during Wednesday’s Asian session. In doing so, the Aussie pair rises for the fifth consecutive day while making rounds to the highest levels in three weeks, marked the previous day, amid cautious mood ahead of Australia’s first quarter (Q1) Gross Domestic Product (GDP).

Earlier in the day, RBA Governor Lowe defended the Aussie central bank’s second consecutive hawkish surprise by saying that June rate rise followed information suggesting greater upside risks to bank’s inflation outlook. The policymaker also stated, “Some further tightening of monetary policy may be required, depending on how economy and inflation evolve.”

It’s worth noting that Australian Treasurer Jim Chalmers also backed the RBA’s surprise rate hike announcement at a press conference on Tuesday by saying that, “It is ‘not our expectation the economy will head into recession.’”

On a different page, hopes of improving the US-China and the Canberra-Beijing ties join the market’s cautious optimism, as well as receding hawkish Fed bets to also underpin the AUD/USD pair’s run-up.

Late on Tuesday, Reuters said that Fed funds futures traders see the Fed as likely to then resume rate increases, with a 65% chance of an at least 25 basis-point increase in July, according to the CME Group’s FedWatch Tool. It’s worth mentioning that the interest rate futures show a nearly 15% probability of a June rate hike. The reason could be linked to downbeat United States activity data released on Monday, as well as the previously dovish comments from the Federal Reserve (Fed) Officials ahead of the pre-Fed blackout.

Amid these plays, S&P500 Futures grind higher as the technology stocks remained firmer but the manufacturing ones weighed on the sentiment and pared Wall Street’s gains. Even so, the US equities closed with minor gains.

Moving on Aussie Q1 GDP, expected to ease to 0.3% QoQ from 0.5% prior, may allow the AUD/USD buyers to catch a breather. However, any surprise positive won’t be taken lightly. Also important to watch will be the monthly trade numbers from China and the Fed concerns.

An upside break of the previous support line stretched from early March, around 0.6620 by the press time, joins successful trading beyond the 50-DMA of around 0.6665 to enable the AUD/USD bulls to aim for the 200-DMA hurdle of near the 0.6700 threshold.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6675 at the time of writing. Pair opened at 0.6617 and is trading with a change of 0.88 % .

The pair is trading above its 20 Daily moving average @ 0.6618, above its 50 Daily moving average @ 0.6663 , below its 100 Daily moving average @ 0.6751 and below its 200 Daily moving average @ 0.6693

The previous day high was 0.6638 while the previous day low was 0.6579. The daily 38.2% Fib levels comes at 0.6615, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6602, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6585, 0.6553, 0.6527
• Pivot resistance is noted at 0.6643, 0.667, 0.6702

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