#AUDUSD @ 0.69232 picks up bids to print two-day uptrend, mildly bid of late. (Pivot Orderbook analysis)

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• AUD/USD picks up bids to print two-day uptrend, mildly bid of late.
• Upbeat Aussie trade data joins mixed China inflation to put a floor under the prices.
• Softer US Treasury bond yields, Fed’s hesitance and downbeat market consensus for US CPI favor bulls.

The pair currently trades last at 0.69232.

The previous day high was 0.6926 while the previous day low was 0.6873. The daily 38.2% Fib levels comes at 0.6906, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6893, expected to provide support.

AUD/USD clings to mild gains around 0.6920, despite lacking follow-through, amid slightly positive market sentiment during early Thursday. In doing so, the Aussie pair cheers the early-day economics from Australia and China, as well as hopes of softer US inflation, amid a cautious mood ahead of the key US Consumer Price Index (CPI) for December.

That said, Australia’s Trade Balance improved to 13,201M in November versus 10,500M market forecasts and 12,217 previous readings. Further details suggest that the Imports reprint 1.0% contraction while the Exports improved to 0.0% versus -1.0% prior during the stated month.

On the other hand, China’s headline CPI YoY grew 1.8% YoY in December versus 1.8% expected and 1.6% prior whereas the Producer Price Index (PPI) marked -0.7% figures compared to -1.3% previous readings and -0.1% market forecasts.

Elsewhere, risk-positive headlines from China’s National Development and Reform Commission (NDRC) also seemed to have put a floor under the AUD/USD prices, due to Aussie-Sino ties. “China has a solid basis to keep prices stable in 2023,” said NDRC earlier on Thursday.

Additionally, Federal Reserve Bank of Boston President Susan Collins’ support for smaller rate increases and market forecasts of a softer US CPI data for December, expected 6.5% YoY versus 7.1% prior, also favor the AUD/USD buyers. That said, the Core CPI, namely the CPI ex Food & Energy, will be observed closely for clear directions and is expected to be 5.7% versus 6.0% prior.

AUD/USD pair’s ability to defend the previous week’s upside break of the 200-DMA and a downward-sloping trend line from June, respectively around 0.6830 and 0.6815, keeps the buyers hopeful of crossing a two-month-old ascending resistance line, around 0.6960 at the latest.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6918 at the time of writing. Pair opened at 0.6907 and is trading with a change of 0.16% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6767, 50 SMA 0.6715, 100 SMA @ 0.6635 and 200 SMA @ 0.6836.

The previous day high was 0.6926 while the previous day low was 0.6873. The daily 38.2% Fib levels comes at 0.6906, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6893, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6878, 0.6849, 0.6825
• Pivot resistance is noted at 0.6931, 0.6954, 0.6983

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