#AUDUSD @ 0.68097 gains positive traction and reverses a part of the overnight slide to a multi-week low. (Pivot Orderbook analysis)

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• AUD/USD gains positive traction and reverses a part of the overnight slide to a multi-week low.
• The USD moves away from a two-decade high and turns out to be a key factor lending support.
• Aggressive Fed rate hike bets to limit the USD losses and cap the pair ahead of the NFP report.

The pair currently trades last at 0.68097.

The previous day high was 0.6852 while the previous day low was 0.6771. The daily 38.2% Fib levels comes at 0.6802, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6821, expected to provide resistance.

The AUD/USD pair attracts some buying on Friday and recovers a part of the previous day’s losses to the 0.6770 area, or the lowest level since July 18. The pair builds on its steady intraday ascent and moves back above the 0.6800 mark, hitting a fresh daily high during the first half of the European session.

The US dollar edges lower and retreats further from a two-decade high touched on Thursday, which, in turn, offers some support to the AUD/USD pair. A softer tone surrounding the US Treasury bond yields keeps the USD bulls on the defensive amid some repositioning trade ahead of the US monthly jobs data. Apart from this, signs of stability in the financial markets further undermine the safe-haven buck and benefit the risk-sensitive aussie.

That said, growing recession fears, economic headwinds stemming from fresh COVID-19 lockdowns in China and the war in Ukraine should cap any optimistic moves. Furthermore, expectations that the Fed will continue to tighten its monetary policy to tame inflation should act as a tailwind for the US bond yields and lend support to the greenback. This, in turn, warrants caution before placing aggressive bullish bets around the AUD/USD pair.

It is worth mentioning that the markets are pricing in a supersized 75 bps rate hike at the September FOMC meeting and the bets were reaffirmed by the recent hawkish remarks by several Fed officials. Traders now look to the US NFP report, which will provide a fresh insight into the economy’s health and influence the USD price dynamics. This, in turn, will drive the AUD/USD pair ahead of the Reserve Bank of Australia (RBA) meeting next week.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.681 at the time of writing. Pair opened at 0.6788 and is trading with a change of 0.32 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6947, 50 SMA 0.6909, 100 SMA @ 0.7004 and 200 SMA @ 0.7125.

The previous day high was 0.6852 while the previous day low was 0.6771. The daily 38.2% Fib levels comes at 0.6802, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6821, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6755, 0.6722, 0.6674
• Pivot resistance is noted at 0.6836, 0.6885, 0.6918

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