#AUDUSD @ 0.67287 is struggling to remain above the immediate hurdle of 0.6720 as investors await FOMC minutes. (Pivot Orderbook analysis)

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• AUD/USD is struggling to remain above the immediate hurdle of 0.6720 as investors await FOMC minutes.
• Higher wage inflation could be a roadblock for the Fed in achieving a 2% inflation rate.
• The Australian Dollar is failing to capitalize on better-than-projected Caixin Manufacturing PMI data.

The pair currently trades last at 0.67287.

The previous day high was 0.6834 while the previous day low was 0.6688. The daily 38.2% Fib levels comes at 0.6744, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6778, expected to provide resistance.

The AUD/USD pair is facing pressure in sustaining above the immediate resistance of 0.6720 in the Asian session. The Aussie asset is expected to re-test the round-level support of 0.6700 as the risk-aversion theme is impacting the Australian Dollar.

Bearish settlement in S&P500 on Tuesday and subdued performance in the 500-United States stock basket on a broader note are highlighting caution in the sentiment of the market participants. The US Dollar Index (DXY) shifted into a bullish trajectory on Tuesday after defending the 103.00 support with sheer strength. Contrary, the demand for US government bonds improved, therefore, 10-year treasury yields dropped to 3.76%.

Appeal for the US Dollar Index has improved dramatically ahead of the release of the Federal Open Market Committee (FOMC) minutes. Investors are eagerly waiting for cues about the monetary policy outlook for CY2023.

Currently, the tight labor market and lower Unemployment Rate in the United States are acting as a major hurdle for the Federal Reserve (Fed) in achieving a 2% inflation rate. A continuation of firmer job additions in the labor market each month is attracting higher employment bills to compensate for the unavailability of labor, which might spur the retail demand ahead.

Meanwhile, the Australian Dollar is failing to capitalize on better-than-anticipated Caixin Manufacturing PMI data. The IHS Markit reported the economic data at 49.0, higher than the consensus of 48.8 but lower than the prior release of 49.4. The street was expecting a decline in the PMI numbers after observing negative cues from China’s official Manufacturing PMI data and the vulnerable status of Covid-19 in China.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6725 at the time of writing. Pair opened at 0.6729 and is trading with a change of -0.06 % .

The pair is trading below its 20 Daily moving average @ 0.6746, above its 50 Daily moving average @ 0.6662 , above its 100 Daily moving average @ 0.6637 and below its 200 Daily moving average @ 0.6856

The previous day high was 0.6834 while the previous day low was 0.6688. The daily 38.2% Fib levels comes at 0.6744, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6778, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6666, 0.6604, 0.652
• Pivot resistance is noted at 0.6813, 0.6897, 0.6959

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