Some buying interest is seen in the AUDUSD currency pair at the price level of 0.65695 on Friday, resulting in a further recovery from its previous two-month low.

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• AUD/USD attracts some buying on Friday and recovers further from a two-month low.

The pair currently trades last at 0.65695.

The previous day high was 0.6569 while the previous day low was 0.6514. The daily 38.2% Fib levels comes at 0.6548, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6535, expected to provide support.

The AUD/USD pair builds on the previous day’s modest bounce from the 0.6515 area, or over a two-month low, and gains some follow-through positive traction for the second successive day on Friday. Spot prices, however, retreat a few pips from a two-day high touched during the Asian session and currently trade around the 0.6565-0.6570 region, up over 0.25% for the day.

The US Dollar (USD) remains on the defensive below its highest level since July 7 touched on Thursday, which, along with a positive tone around the US equity futures, benefits the risk-sensitive Aussie. This, along with the Reserve Bank of Australia’s hawkish quarterly Statement on Monetary Policy (SOMP), indicating that interest rates may still need to go higher, lends some support to the AUD/USD pair. Adding to this, Commerce Ministry announced that the country will lift the anti-dumping and anti-subsidy tariff on barley imports from Australia, which turns out to be another factor acting as a tailwind for the major.

The downside for the USD, however, remains cushioned in the wake of rising bets for further policy tightening by the Federal Reserve (Fed). In fact, the incoming stronger US macro data continues to point to an extremely resilient economy, which should allow the Fed to keep interest rates higher for longer. This had led to the recent rise in the US Treasury bond yields. It is worth recalling that the yield on the benchmark 10-year US government bond shot to its highest level since October on Thursday, This, in turn, acts as a tailwind for the Greenback and keeps a lid on any meaningful appreciating move for the AUD/USD pair.

Traders also seem reluctant to place aggressive directional bets and prefer to wait on the sidelines ahead of the release of the closely-watched US monthly employment details later during the early North American session. The popularly known NFP report will influence expectations about the Fed’s future rate-hike path, which will play a key role in driving the USD demand and help determine the near-term trajectory for the AUD/USD pair. This further makes it prudent to wait for strong follow-through buying before confirming that the pair’s three-week-old downtrend from the 0.6900 mark has run its course.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6568 at the time of writing. Pair opened at 0.655 and is trading with a change of 0.27 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6727, 50 SMA 0.67, 100 SMA @ 0.669 and 200 SMA @ 0.6733.

The previous day high was 0.6569 while the previous day low was 0.6514. The daily 38.2% Fib levels comes at 0.6548, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6535, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.652, 0.649, 0.6466
• Pivot resistance is noted at 0.6575, 0.6599, 0.6629

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