#AUDUSD @ 0.65904 is struggling to recapture the immediate resistance of 0.6600 amid the risk-off mood. (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 is struggling to recapture the immediate resistance of 0.6600 amid the risk-off mood.
• A decline in China’s CPI might force the PBoC to infuse more liquidity into the economy.
• Solid US Employment data confirms that fears of stubborn inflation among Fed policymakers were real.

The pair currently trades last at 0.65904.

The previous day high was 0.6629 while the previous day low was 0.6568. The daily 38.2% Fib levels comes at 0.6606, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6591, expected to provide resistance.

The AUD/USD pair is displaying a back-and-forth action below the round-level resistance of 0.6600 in the Asian session. The Aussie asset looks vulnerable around the same as deepening fears of a recession in the United States amid expectations of higher rates by the Federal Reserve (Fed) have solidified the risk-aversion theme.

S&P500 futures are showing nominal losses after a weak recovery move. It seems that the dead cat bounce move by the 500-US stocks basket is fading away. The US Dollar Index (DXY) has turned sideways above 105.20 after a mild correction, however, the upside looks favored amid upbeat United States Employment data.

The solid addition of fresh payrolls in the US labor market in February due to rising demand has confirmed that fears of stubborn inflation among Fed policymakers were real. The US Automatic Data Processing (ADP) has reported an addition of 242K jobs in February, higher than the expectations of 200K and the former release of 119K. Therefore, Fed chair Jerome Powell cited “Fed is prepared to announce more rates to bring down inflation.”

Investors will get more clarity on the US labor market after the release of the US Nonfarm Payrolls (NFP) data, which will release on Friday. Apart from that, the release of the Unemployment Rate and the Average Hourly Earnings data will be of utmost importance.

After the fifth consecutive 25 basis points (bps) rate hike by the Reserve Bank of Australia (RBA) and a consideration of a policy-tightening pause led by a one-time blip in the monthly Consumer Price Index (CPI) by RBA Governor Philip Lowe, the Australian Dollar has faced immense heat.

Now, investors are shifting their focus toward China’s Consumer Price Index (CPI) (Feb) data. Annual China’s CPI is expected to decline to 1.9% from the prior release of 2.1%. On a monthly basis, China’s CPI has been trimmed to 0.2% from the former release of 0.8%. Lower inflation might force China’s administration and the people’s Bank of China (PBoC) to infuse more liquidity into the economy.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6592 at the time of writing. Pair opened at 0.6594 and is trading with a change of -0.03 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6811, 50 SMA 0.6893, 100 SMA @ 0.676 and 200 SMA @ 0.6784.

The previous day high was 0.6629 while the previous day low was 0.6568. The daily 38.2% Fib levels comes at 0.6606, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6591, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6565, 0.6536, 0.6504
• Pivot resistance is noted at 0.6626, 0.6658, 0.6687

[/s2If]
Join Our Telegram Group