#AUDUSD @ 0.65906 plunges below 0.6600 as sentiment dampened. (Pivot Orderbook analysis)

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• AUD/USD plunges below 0.6600 as sentiment dampened.
• Recently, China’s Covid-19 outbreak kept investors worried about speculations that the Government would reimpose restrictions.
• Traders’ focus turns to Reserve Bank of Australia Governor Philippe Lowe speaking on Tuesday.

The pair currently trades last at 0.65906.

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 Australian Dollar (AUD) fell for the fourth straight day in a risk-off mood after news broke that the latest China Covid-19 outbreak caused three deaths during the weekend, as authorities eased some restrictions. Hence, speculators seeking safety bolstered the US Dollar (USD) amid growing concerns about reimposing lockdowns. The AUD/USD is trading at 0.6590 after hitting a daily high of 0.6683.

Wall Street denotes investors’ worries about China being hit by a Covid outbreak, extending its losses in the day. A light economic calendar in the United States (US) witnessed the Chicago National Activity index falling to negative territory in October, to -0.05 from 0.17 in September. Although the US October CPI and PPI reports were softer-than-expected, a solid US Retail Sales report increased the chances that the Fed will continue tightening monetary conditions.

During the last week, a slew of Federal Reserve (Fed) officials expressed the need to ease the pace of interest rate hikes but mentioned that they’re not pausing. St. Louis Fed President James Bullard said rates are not “sufficiently restrictive” and foresees the Federal Funds rate (FFR) to peak at around 5% to 6%.

The Atlanta Fed President Raphael Bostic noted that the supports slowing the rhythm of interest-rate increases and foresees 75 to 100 bps additional tightening to the FFR.

Elsewhere, the US Dollar Index (DXY), a measure of the buck’s value against a basket of six currencies, climbs sharply by 0.80%, at 107.823, a headwind for the Australian Dollar.

Aside from this, an absent Australian economic calendar leaves AUD/USD traders leaning on market sentiment, battered by China‘s news. It should be noted that the People’s Bank of China (PBoC) kept the Loan Prime Rate (LPR) unchanged at 3.65%, while Iron Ore prices added another piece of the puzzle that is weighing on the Australian Dollar.

Ahead into the week, the Reserve Bank of Australia (RBA) Governor Philip Lowe will cross wires on Tuesday, delivering a speech at the Annual Committee for Economic Development of Australia Dinner. He is expected to reiterate the RBA’s commitment to tame inflation, though it is not likely to rock the boat. On the US front, the economic calendar will feature the Richmond Fed Manufacturing Index alongside further Fed speaking.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6595 at the time of writing. Pair opened at 0.667 and is trading with a change of -1.12 % .

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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