#AUDUSD @ 0.66684 AUDUSD has picked bids near 0.6660 as investors await PBOC’s interest rate policy. (Pivot Orderbook analysis)

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• AUDUSD has picked bids near 0.6660 as investors await PBOC’s interest rate policy.
• Rising Covid-19 cases and vulnerable real estate demand could compel the PBOC to an expansionary policy.
• Fed Bostic sees termination of the 75 bps rate hike regime and space for a mere 100 bps escalation ahead.

The pair currently trades last at 0.66684.

The previous day high was 0.673 while the previous day low was 0.6661. The daily 38.2% Fib levels comes at 0.6688, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6704, expected to provide resistance.

The AUDUSD pair has advanced after sensing support of around 0.6660 in the early Asian session. Earlier, the asset struggled as investors were having anxiety ahead of the interest rate decision by the People’s Bank of China (PBOC).

The risk impulse is quiet as potential triggers for a decisive action are absent from the market. Meanwhile, the US dollar index (DXY) is facing temporary barricades around 107.00 as investors have shifted their focus toward the release of the US Durable Goods Orders data.

Meanwhile, the returns on US government bonds could face some struggle after a rebound as Atlanta Federal Reserve (Fed) President Raphael Bostic see the termination of the 75 basis points (bps) rate hike regime from now.

Fed policymaker on Saturday cited that he is ready to “move away” from three-quarter-point rate hikes at the Fed’s December meeting, reported Reuters. He further added that Fed’s target policy rate will add no more than another percentage point to tackle inflation. After that, the Fed would need to pause and “let the economic dynamics play out,” given that it may take what he estimates as anywhere from 12 to 24 months for the impact of Fed rate increases to be “fully realized.”

On Monday, the monetary policy decision by the PBOC will be keenly watched. China’s central bank could move for an expansionary stance as economic projections have been tumbled led by rising Covid-19 cases. Also, vulnerable real estate demand would force injecting more funds into the economy. It is worth noting that Australia is a leading trading partner of China and a rate cut decision by the PBOC would support the Aussie bulls.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6674 at the time of writing. Pair opened at 0.667 and is trading with a change of 0.06 % .

The pair is trading above its 20 Daily moving average @ 0.6513, above its 50 Daily moving average @ 0.6495 , below its 100 Daily moving average @ 0.6695 and below its 200 Daily moving average @ 0.6947

The previous day high was 0.673 while the previous day low was 0.6661. The daily 38.2% Fib levels comes at 0.6688, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6704, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6644, 0.6618, 0.6575
• Pivot resistance is noted at 0.6713, 0.6757, 0.6783

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