#AUDUSD @ 0.67303 Aussie’s uptrend capped at 0.6800; the pair retreats to 0.6720. (Pivot Orderbook analysis)

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• Aussie’s uptrend capped at 0.6800; the pair retreats to 0.6720.
• Market mood sours on concerns about COVID-19 infections in China.
• AUD/USD remains within recent ranges with the market focused on US data.

The pair currently trades last at 0.67303.

The previous day high was 0.6801 while the previous day low was 0.6719. The daily 38.2% Fib levels comes at 0.677, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6751, expected to provide resistance.

The Aussie is set to cap a four-day uptrend on Thursday, as the pair turned lower from one-week highs at 0.6800 and has extended losses to test week lows at 0.6720 in the early European session.

The sharp increase of coronavirus infections in China has curbed hopes about the economic recovery of the Asian dragon, crushing the moderate optimism observed in the first half of the week.

The major Asian markets have closed Thursday’s session in the red, and European indexes are following suit posting losses between 0.17% in Frankfort and a 0.62% decline in London.

COVID-19 cases have surged in China since the Government relaxed its Zero-Covid policy, and are overwhelming the country’s healthcare system in a wave that is threatening to extend from urban to rural areas as many citizens will travel to celebrate the lunar year. with their families.

In this context, many countries are considering introducing a covid test for travelers from China. The US has already announced the mandatory tests from January 5 and Italy is considering the same measure after half of the travelers arriving on a flight from China tested positive for Coronavirus at Milan’s Malpensa Airport on Wednesday.

The sentiment-linked Aussie has been hit by the souring mood and investors’ concerns about the consequences for China’s Economic growth. In a thinned post-Christmas market, however, the pair remains within recent ranges on Thursday with the focus on the US initial jobless claims and oil stocks figures, due later today.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.673 at the time of writing. Pair opened at 0.6734 and is trading with a change of -0.06 % .

The pair is trading below its 20 Daily moving average @ 0.6739, above its 50 Daily moving average @ 0.6627 , above its 100 Daily moving average @ 0.6649 and below its 200 Daily moving average @ 0.687

The previous day high was 0.6801 while the previous day low was 0.6719. The daily 38.2% Fib levels comes at 0.677, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6751, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6702, 0.667, 0.662
• Pivot resistance is noted at 0.6784, 0.6833, 0.6865

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