#AUDUSD @ 0.67369 has sensed heat in stretching its recovery above 0.6750 as the risk appetite theme has not strengthened enough. (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 has sensed heat in stretching its recovery above 0.6750 as the risk appetite theme has not strengthened enough.
• A decline in the monthly inflationary pressures will provide relief to the RBA.
• The contraction in the US Manufacturing PMI is likely to trim ahead amid a recovery in the overall demand.

The pair currently trades last at 0.67369.

The previous day high was 0.6824 while the previous day low was 0.6719. The daily 38.2% Fib levels comes at 0.6759, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6784, expected to provide resistance.

The AUD/USD pair has sensed pressure in stretching its recovery above the immediate resistance of 0.6740 in the early Tokyo session. The risk appetite theme has witnessed a decent interest, however, it is not strong enough to fuel risk-sensitive assets for vertical moves. The Australian Dollar is subjected to display sheer volatility ahead as investors are awaiting the release of Australia’s Gross Domestic Product (GDP) data, which will release on Wednesday.

The street is anticipating a decent growth in the scale of economic activities by 0.7% in the fourth quarter of CY2022, higher than the 0.6% price in Q3. On an annualized basis, the Australian GDP is expected to display the growth of 2.7% vs. the former release of 5.9%. It seems that the restrictive monetary policy offered by the Reserve Bank of Australia (RBA) has barricaded firms from accelerating output.

Apart from the Australian GDP data, monthly Consumer Price Index (CPI) numbers will be keenly watched. The monthly CPI (Jan) is seen lower at 7.9% from the former release of 8.4%. A decline in the monthly inflationary pressures will provide relief to RBA Governor Philip Lowe and other policymakers, which are worried about Australia’s sticky inflation.

S&P500 showed a recovery move on Monday after a bearish week as investors shrugged off the consequences of higher rates by the Federal Reserve (Fed). The recession fears in the United States have eased dramatically amid robust consumer spending due to strong wage gains. The US Dollar Index (DXY) is likely to remain sideways as investors are shifting their focus toward the release of the United States ISM Manufacturing PMI (Feb) data, which is scheduled for Wednesday.

The economic data is expected to improve to 48.0 from the former release of 47.4. A figure below 50.0 is considered a contraction in activities. Therefore, it would be worth calling it a decline in contraction. The New Orders Index that conveys forward demand is expected to rebound to 43.7 from the prior figure of 42.5.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6737 at the time of writing. Pair opened at 0.6727 and is trading with a change of 0.15 % .

The pair is trading below its 20 Daily moving average @ 0.693, below its 50 Daily moving average @ 0.6893 , above its 100 Daily moving average @ 0.6726 and below its 200 Daily moving average @ 0.6801

The previous day high was 0.6824 while the previous day low was 0.6719. The daily 38.2% Fib levels comes at 0.6759, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6784, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6689, 0.6651, 0.6584
• Pivot resistance is noted at 0.6795, 0.6862, 0.69

[/s2If]
Join Our Telegram Group