#AUDUSD @ 0.67300 fell from 0.6760s as US Treasury bond yields exploded. (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 fell from 0.6760s as US Treasury bond yields exploded.
• US jobless claims continued their downtrend, printing figures below estimates.
• What to watch? Australia’s PMIs, US Services PMIs, and Fed speakers.

The pair currently trades last at 0.67300.

The previous day high was 0.6784 while the previous day low was 0.6695. The daily 38.2% Fib levels comes at 0.675, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6729, expected to provide support.

AUD/USD found resistance at around 0.6760, dropping almost 0.40% on Thursday after solid economic data from the United States (US) was released. A tight labor market, and last week’s higher inflation figures in the US, suggest that the US Federal Reserve (Fed) still has ways to go to curb inflation. The AUD/USD exchanges hands at around 0.6730s.

Wall Street Is set to close with solid gains in Thursday’s session. Nevertheless, in the FX space, risk-perceived currencies, like the Australian Dollar (AUD), took their toll on higher US Treasury bond yields, with 2s, 5s, and 10s, staying above the 4.08% threshold. Consequently, the US Dollar rose, as shown by the US Dollar Index (DXY), up 0.57%, at 104.965.

The US docket revealed that Initial Jobless Claims for the week ending February 25 came at 190,000 below the 195,000 estimated by analysts. Following the release, US Treasury bond yields skyrocketed above the 4% mark, with 2s reaching as high as 4.90%, while the DXY hit a daily high of 105.180.

The AUD/USD edged lower and hit a daily low of 0.6706; sellers failed to extend its fall below the R1 daily pivot point at around 0.6707. nevertheless, the AUD/USD recovered some ground, on Atlanta’s Fed President Raphael Bostic saying that the Fed could be in a position to pause by mid-late summer.

Bostic added that he foresees the Federal Funds Rate (FFR) to peak at around 5.00% – 5.25% and reiterated that it will stay there “well into 2024.”

The docket will feature the S&P Global Services PMI on the Australian front, while China’s data with the Caixin Services PMI will also influence the Aussie Dollar (AUD). On the US front, Fed speakers would cross newswires alongside the release of the ISM and S&P Global Services PMIs.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6732 at the time of writing. Pair opened at 0.6754 and is trading with a change of -0.33 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6879, 50 SMA 0.6896, 100 SMA @ 0.6739 and 200 SMA @ 0.6796.

The previous day high was 0.6784 while the previous day low was 0.6695. The daily 38.2% Fib levels comes at 0.675, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6729, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6705, 0.6656, 0.6617
• Pivot resistance is noted at 0.6794, 0.6833, 0.6882

[/s2If]
Join Our Telegram Group