#AUDUSD @ 0.64744 A combination of supporting factors lifts to a nearly three-week high on Wednesday. (Pivot Orderbook analysis)

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• A combination of supporting factors lifts AUD/USD to a nearly three-week high on Wednesday.
• Hotter-than-expected Australian CPI report boosts the aussie amid sustained USD selling bias.
• Reduced bets for more aggressive Fed rate hikes and sliding US bond yields weigh on the USD.

The pair currently trades last at 0.64744.

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 gains traction for the second successive day on Wednesday and builds on its intraday ascent through the early European session. This also marks the fourth day of a positive move in the previous five and lifts spot prices to a nearly three-week high, around the 0.6450-0.6455 region in the last hour.

The US dollar remains under some selling pressure amid reduced bets for a more aggressive tightening by the Fed, which, in turn, is seen as a key factor pushing the AUD/USD pair higher. In fact, the softer US macro data released on Tuesday pointed to signs of a slowdown in the world’s largest economy and might force the US central bank to soften its hawkish stance. This is reinforced by a further pullback in the US Treasury bond yields and keeps the USD bulls on the defensive.

The Australian dollar, on the other hand, draws additional support from hotter-than-expected domestic consumer inflation figures. The Australian Bureau of Statistics (ABS) reported that the headline CPI rose 1.8% in the September quarter and the annual rate shot up to 7.3% – the highest since 1990. The data suggests that the Reserve Bank of Australia may have acted prematurely in slowing the pace of policy tightening in October and will need to raise rates to combat inflation.

The combination of fundamental factors pushes the AUD/USD pair through the 0.6400-0.6410 resistance zone, prompting some technical buying. This might have also set the stage for a further appreciating move. That said, a softer risk tone – amid growing worries about a deeper global economic downturn, might hold back traders from placing aggressive bullish bets around the risk-sensitive aussie. This warrants caution for bulls and positioning for any further gains.

Market participants now look forward to the US economic docket, featuring the release of New Home Sales data later during the early North American session. This, along with the US bond yields and the broader risk sentiment, will influence the USD price dynamics and provide some impetus to the AUD/USD pair. The focus will then shift to important US macro releases on Thursday, which should determine the near-term trajectory ahead of the FOMC meeting and the NFP report next week.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6454 at the time of writing. Pair opened at 0.6396 and is trading with a change of 0.91 % .

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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