#AUDUSD @ 0.62691 The aussie retreats from 0.6330 and reaches 0.6250 low. (Pivot Orderbook analysis)

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• The aussie retreats from 0.6330 and reaches 0.6250 low.
• The greenback rallies on Fed tightening hopes and higher US yields.
• AUD/USD might revisit 2020 lows at 0.5506 – Credit Suisse.

The pair currently trades last at 0.62691.

The previous day high was 0.634 while the previous day low was 0.6266. The daily 38.2% Fib levels comes at 0.6312, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6294, expected to provide resistance.

The Australian dollar is giving away previous gains on Wednesday, weighed by a stronger US dollar in a deteriorated market mood. The pair has pulled back from Tuesday’s high at 0.6330, returning to the mid-range of 0.6200.

The positive risk sentiment seen over the last two days faded on Wednesday. The major stock markets are going through moderate declines, which is undermining demand for the risk-sensitive Australian dollar.

The greenback is going through a strong recovery, fuelled by hopes of another aggressive Fed rate hike in November. In this backdrop, US Treasury bonds have pushed higher, with the benchmark 10-year note jumping to levels above 4% for the first time since the 2008 financial crash.

Besides, the Reserve Bank of Australia’s decision to slow down the pace of monetary tightening has increased negative pressure on the Australian Dollar.

FX analysts at Credit Suisse maintain their negative outlook on the pair and warn about further decline to 0.5506: “AUD/USD maintains its medium-term downtrend and (…) we continue to look for further sustained downside (…) We expect a fall to the 78.6% retracement of the 2020/21 uptrend and the low from April 2020 at 0.6041/5978 initially. Whilst we would stay wary of another pause here, a convincing break lower would be seen to open the door for a move all the way to 0.5506 – the low of 2020.”

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.626 at the time of writing. Pair opened at 0.6311 and is trading with a change of -0.81 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6417, 50 SMA 0.6687, 100 SMA @ 0.6817 and 200 SMA @ 0.7024.

The previous day high was 0.634 while the previous day low was 0.6266. The daily 38.2% Fib levels comes at 0.6312, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6294, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6271, 0.6232, 0.6197
• Pivot resistance is noted at 0.6345, 0.638, 0.6419

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