On Tuesday, the Australian dollar to US dollar exchange rate of 0.65455 encounters a new level of selling pressure due to a slight increase in the value of the US dollar.

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• AUD/USD meets with a fresh supply on Tuesday and is pressured by a modest USD strength.

The pair currently trades last at 0.65455.

The previous day high was 0.6593 while the previous day low was 0.6555. The daily 38.2% Fib levels comes at 0.6579, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.657, expected to provide resistance.

The AUD/USD pair comes under some selling pressure during the Asian session on Tuesday and drops to a fresh daily low, further below mid-0.6500s in the last hour, snapping a three-day winning streak.

The US Dollar (USD) ticks higher for the second successive day in the wake of growing acceptance that the Federal Reserve (Fed) will stick to its hawkish stance. The bets were reaffirmed by the closely-watched US jobs report, which pointed to continued tightness in the labour market and raised hopes for a soft economic landing. Adding to this, Fed officials said on Monday that additional interest rate hikes are likely as inflation remains persistently high. This remains supportive of elevated US Treasury bond yields, which, in turn, act as a tailwind for the buck and exert some downward pressure on the AUD/USD pair.

That said, a generally positive tone around the equity markets keeps a lid on any meaningful upside for the safe-haven Greenback and could lend some support to the risk-sensitive Australian Dollar (AUD). Apart from this, the Reserve Bank of Australia’s (RBA) hawkish outlook, indicating that interest rates may still need to go higher, might further contribute to limiting deeper losses for the AUD/USD pair, at least for now. Traders might also refrain from placing aggressive directional bets ahead of this week’s release of the latest consumer inflation figures from China and the US, due on Wednesday and Thursday, respectively.

The aforementioned mixed fundamental backdrop makes it prudent to wait for strong follow-through selling before confirming that the AUD/USD pair’s recent bounce from the 0.6515 area, or a two-month low has run its course. Hence, a sustained break below the 0.6500 psychological mark is needed to support prospects for the resumption of a three-week-old downtrend. Traders now look forward to the US Trade Balance data, which, along with Fedspeaks, will influence the USD price dynamics. Apart from this, the broader risk sentiment might further contribute to producing short-term opportunities around the major.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6563 at the time of writing. Pair opened at 0.6574 and is trading with a change of -0.17 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6716, 50 SMA 0.6702, 100 SMA @ 0.6688 and 200 SMA @ 0.6734.

The previous day high was 0.6593 while the previous day low was 0.6555. The daily 38.2% Fib levels comes at 0.6579, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.657, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6555, 0.6536, 0.6517
• Pivot resistance is noted at 0.6593, 0.6612, 0.663

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