#AUDUSD @ 0.70011 reverses swiftly from the daily low and rallies to over a one-week high in the last hour. (Pivot Orderbook analysis)

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• AUD/USD reverses swiftly from the daily low and rallies to over a one-week high in the last hour.
• The USD weakens despite a slightly higher-than-expected US CPI print and lends support to the pair.
• A softer risk tone helps turns out to be a key factor capping the upside for the risk-sensitive Aussie.

The pair currently trades last at 0.70011.

The previous day high was 0.6974 while the previous day low was 0.6891. The daily 38.2% Fib levels comes at 0.6942, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6922, expected to provide support.

The AUD/USD pair rallies nearly 100 pips from the daily low touched in the last hour and spikes to over a one-week high following the release of the US consumer inflation figures. The pair is currently placed just above the 0.7000 psychological mark, though lacks any follow-through buying.

The US Dollar witnessed a typical “buy the rumour, sell the news” kind of trade after the US Bureau of Labor Statistics reported that the headline CPI rose by 0.5% in January. The reading was in line with market expectations and was accompanied by a higher-than-expected yearly rate, which ticked down to 6.4% from the 6.5% previous. More importantly, Core CPI, which excludes food and energy prices, came in at 0.4% MoM and 5.6% YoY.

Given that a stronger print was already priced in the markets, the USD weakens across the board in the absence of any major surprise to the upside from the US CPI. This, in turn, is seen as a key factor pushing the AUD/USD pair higher. That said, a generally softer tone around the equity markets seems to benefit the Greenback’s relative safe-haven status and keeps a lid on any further gains for the risk-sensitive Aussie, at least for the time being.

From a technical perspective, repeated failures to find acceptance above the 0.7000 mark suggest that the AUD/USD pair’s recent pullback from its highest level since June 2020 is still far from being over. Hence, it will be prudent to wait for a strong follow-through buying before positioning for any further appreciating move.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6985 at the time of writing. Pair opened at 0.6966 and is trading with a change of 0.27 % .

The pair is trading below its 20 Daily moving average @ 0.7002, above its 50 Daily moving average @ 0.6874 , above its 100 Daily moving average @ 0.6689 and above its 200 Daily moving average @ 0.6806

The previous day high was 0.6974 while the previous day low was 0.6891. The daily 38.2% Fib levels comes at 0.6942, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6922, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6913, 0.686, 0.683
• Pivot resistance is noted at 0.6997, 0.7027, 0.708

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