#AUDUSD @ 0.64974 is eyeing a cushion at around 0.6500 ahead of RBA policy. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• AUD/USD is eyeing a cushion at around 0.6500 ahead of RBA policy.
• A fifth consecutive 50 bps rate announcement is expected by the RBA.
• The DXY is displaying a vulnerable performance after a downbeat release of the US ISM PMI data.

The pair currently trades last at 0.64974.

The previous day high was 0.6522 while the previous day low was 0.6402. The daily 38.2% Fib levels comes at 0.6476, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6448, expected to provide support.

The AUD/USD pair is picking bids around the psychological support of 0.6500 after a mild correction from 0.6520. The major has turned sideways after a sheer upside from the critical support of 0.6400. The asset is expected to display a lackluster performance in the remaining Tokyo session as investors are awaiting the announcement of the interest rate decision by the Reserve Bank of Australia (RBA).

As per the projections, RBA Governor Philip Lowe will announce a rate hike of 50 basis points (bps) for the fifth consecutive time. An occurrence of the same will drive the Official Cash Rate (OCR) to 2.85%. If that occurs, RBA policymakers will be forced to dictate a less ‘hawkish’ guidance. The RBA sees its OCR to top around 3.85%. The current pace will meet the desired rate by the end of 2022, therefore, the central bank will trim its hawkish tone if it move ahead with half-a-percent rate hike.

Well, one could not rule out the alternative of a 25 bps rate hike by the RBA as the option was cited in the discussion list, as drafted in RBA monetary policy minutes. Therefore, investors should be expected the unexpected at the October meeting.

Meanwhile, the US dollar index (DXY) is on the tenterhooks as expectations for a decline towards the round-level support of 111.00 are accelerating. A downbeat reading of US ISM Manufacturing PMI has weakened the DXY. The economic PMI data declined to 50.9 vs. the expectations of 52.2 and the prior release of 52.8. Trimmed retail demand has slashed the extent of manufacturing activities, which is warranting a slowdown ahead.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6499 at the time of writing. Pair opened at 0.6515 and is trading with a change of -0.25 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6647, 50 SMA 0.6825, 100 SMA @ 0.69 and 200 SMA @ 0.7072.

The previous day high was 0.6522 while the previous day low was 0.6402. The daily 38.2% Fib levels comes at 0.6476, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6448, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6438, 0.636, 0.6318
• Pivot resistance is noted at 0.6558, 0.66, 0.6677

[/s2If]
Join Our Telegram Group