#AUDUSD @ 0.63226 has faced barricades around 0.6350 amid China’s Jinping-infused pessimism. (Pivot Orderbook analysis)

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• AUD/USD has faced barricades around 0.6350 amid China’s Jinping-infused pessimism.
• A fourth consecutive 75 bps rate hike by the Fed looks likely.
• Fears of recession in the US economy have accelerates as US Yellen cited that the one cannot be ruled out.

The pair currently trades last at 0.63226.

The previous day high was 0.6411 while the previous day low was 0.6272. The daily 38.2% Fib levels comes at 0.6325, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6358, expected to provide resistance.

The AUD/USD pair surrendered its pullback move to near 0.6350 in the Tokyo session. China’s Jinping-infused pessimism is weighing pressure on the aussie dollar. The risk-on impulse is still solid despite a minor fall in S&P500 futures after back-to-back bullish settlements. Meanwhile, the US dollar index (DXY) is attempting to recapture the critical hurdle of 112.00 after a subdued opening in Tokyo.

The 10-year US Treasury yields have trimmed to 4.21% amid a positive market sentiment. The chances for a fourth consecutive 75 basis point (bps) rate hike by the Federal Reserve (Fed) stand at 95%, according to the CME FedWatch tool.

A Reuters poll on Fed’s interest rate projections claimed that the central bank will announce a fourth consecutive 75 bps rate hike. Other outcomes of the Reuters poll state that the central bank should not pause until inflation falls to around half its current level. No, doubt the aggressive rate hike cycle by the Fed is also welcoming the risk of recession ahead.

Fears of recession risk have escalated significantly as US Treasury Chief Janet Yellen cited “Cannot rule out risk” of a recession, as reported by MSNBC news.

Going forward, Thursday’s US Gross Domestic Product (GDP) data will hog the limelight. The annualized GDP is expected to improve significantly to 2.4% vs. a decline of 0.6% reported earlier.

On the Australian front, the unprecedented third term for China’s leader XI Jinping has shaken the aussie bulls. Growth prospects in China are at stake which is impacting the trade projections of Australia. Apart from that, Australian Consumer Price Index (CPI) data is gaining more traction. According to the estimates, the headline inflation will accelerate to 7.0% vs. the prior release of 6.1% on an annual basis.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6318 at the time of writing. Pair opened at 0.6313 and is trading with a change of 0.08 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6366, 50 SMA 0.6625, 100 SMA @ 0.6781 and 200 SMA @ 0.7005.

The previous day high was 0.6411 while the previous day low was 0.6272. The daily 38.2% Fib levels comes at 0.6325, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6358, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6253, 0.6194, 0.6115
• Pivot resistance is noted at 0.6392, 0.6471, 0.6531

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