#AUDUSD @ 0.63771 has advanced to 0.6400 as Aussie headline CPI has landed at 7.3% vs. projections of 7.0%. (Pivot Orderbook analysis)

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• AUD/USD has advanced to 0.6400 as Aussie headline CPI has landed at 7.3% vs. projections of 7.0%.
• The RBA would require returning to its 50 bps rate hike spell in absence of inflation exhaustion signals.
• A rebound in the risk-off impulse has pushed the DXY above 111.00.

The pair currently trades last at 0.63771.

The previous day high was 0.6412 while the previous day low was 0.63. The daily 38.2% Fib levels comes at 0.6369, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6343, expected to provide support.

The AUD/USD pair has jumped to 0.6400 as the Australian Bureau of Statistics has reported the headline Consumer Price Index (CPI) for the third quarter of CY2022 at 7.3%, higher than the expectations of 7.0% and the prior release of 6.1% on an annual basis. Also, the quarterly inflation rate has landed in line with the former print of 1.8% and higher than the projections of 1.5%.

This may force the Reserve Bank of Australia (RBA) to announce a bigger rate hike in the upcoming monetary policy. It is worth noting that the RBA hiked the Official Cash Rate (OCR) by 25 basis points (bps) to 2.6% in its October monetary policy meeting. RBA Governor Philip Lowe slowed down the pace of hiking rates in October as the central bank was banking upon a 50 bps rate hike spell earlier. Now, a bigger-than-projected rate hike will compel the RBA to return to a 50 bps rate hike spell

On Tuesday, the aussie bulls displayed a steep rise and defended China’s Jinping-infused pessimism. The unprecedented third term for China’s XI Jinping leadership dented the sentiment of investors favoring Chinese equities and other related assets. The antipodean was punished for being a leading trading partner of China, as Jinping’s ideology-driven approaches are not healthy for China’s economic prospects.

Meanwhile, the US dollar index (DXY) is displaying a pullback move and has crossed the 111.00 hurdle. The risk-on profile has witnessed a dent as S&P500 futures have witnessed a vertical fall after a three-day buying spree. This could be a correction in the 500-stock basket of the US after a firmer rally.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6381 at the time of writing. Pair opened at 0.6396 and is trading with a change of -0.23 % .

The pair is trading above its 20 Daily moving average @ 0.6364, below its 50 Daily moving average @ 0.6612 , below its 100 Daily moving average @ 0.6772 and below its 200 Daily moving average @ 0.7001

The previous day high was 0.6412 while the previous day low was 0.63. The daily 38.2% Fib levels comes at 0.6369, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6343, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6327, 0.6257, 0.6215
• Pivot resistance is noted at 0.6439, 0.6481, 0.6551

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