#AUDUSD @ 0.67868 gains traction for the third successive day, though lacks follow-through buying. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• AUD/USD gains traction for the third successive day, though lacks follow-through buying.
• Bets for less aggressive Fed rate hikes weigh on the USD .and act as a tailwind for the pair.
• The upside seems capped as traders await the key US CPI and FOMC meeting next week.

The pair currently trades last at 0.67868.

The previous day high was 0.6781 while the previous day low was 0.6698. The daily 38.2% Fib levels comes at 0.6749, expected to provide support. Similarly, the daily 61.8% fib level is at 0.673, expected to provide support.

The AUD/USD pair prolongs its positive trend for the third successive day and maintains its bid tone through the mid-European session. The pair, however, remains below its highest level since September 13 touched earlier this week and is currently placed just a few pips below the 0.6800 round-figure mark.

A combination of factors drags the US Dollar back closer to over a five-month low touched earlier this week, which, in turn, is seen offering support to the AUD/USD pair. Expectations that the Fed will slow the pace of its policy tightening and deliver a relatively smaller 50 bps rate hike in December keep the US Treasury bond yields depressed. This, along with a generally positive tone around the equity markets, undermines the safe-haven greenback and benefits the risk-sensitive Aussie.

The easing of COVID-19 restrictions in China remains supportive of the recent recovery in the global risk sentiment. Furthermore, a fresh leg up in commodity prices provides an additional lift to the resources-linked Australian Dollar. That said, growing worries about a deeper global economic downturn might keep a lid on any optimistic move and act as a headwind for the AUD/USD pair. Traders might also prefer to wait on the sidelines ahead of next week’s key macro data/event risks from the US.

The latest US consumer inflation figures for November will be released on Tuesday. This will be followed by the highly-anticipated FOMC monetary policy meeting on December 13-14. The outcome should influence the near-term USD price dynamics and provide a fresh directional impetus to the AUD/USD pair. In the meantime, traders on Friday will look to the US economic docket, featuring the Producer Price Index (PPI) and the Prelim Michigan Consumer Sentiment Index, for short-term opportunities.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6788 at the time of writing. Pair opened at 0.6772 and is trading with a change of 0.24 % .

The pair is trading above its 20 Daily moving average @ 0.672, above its 50 Daily moving average @ 0.6519 , above its 100 Daily moving average @ 0.6682 and below its 200 Daily moving average @ 0.6913

The previous day high was 0.6781 while the previous day low was 0.6698. The daily 38.2% Fib levels comes at 0.6749, expected to provide support. Similarly, the daily 61.8% fib level is at 0.673, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.672, 0.6668, 0.6638
• Pivot resistance is noted at 0.6803, 0.6833, 0.6885

[/s2If]
Join Our Telegram Group