#AUDUSD @ 0.67511 turns lower for the second successive day, albeit lacks follow-through selling. (Pivot Orderbook analysis)
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- AUD/USD turns lower for the second successive day, albeit lacks follow-through selling.
- A softer risk tone lends some support to the USD and weighs on the risk-sensitive Aussie.
- The downside remains cushioned as traders keenly await the release of the crucial US CPI.
The pair currently trades last at 0.67511.
The previous day high was 0.6787 while the previous day low was 0.6746. The daily 38.2% Fib levels comes at 0.6762, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6771, expected to provide resistance.
The AUD/USD pair attracts some sellers following an intraday uptick to the 0.6775 area on Wednesday and turns lower for the second successive day, though lacks follow-through. Spot prices trade with a mild negative bias, just above mid-0.6700s during the early part of the European session, down less than 0.10% for the day.
A generally softer tone around the equity markets lends some support to the safe-haven US Dollar (USD), which, along with concerns over Chinese economic growth, turn out to be a key factor undermining the risk-sensitive Aussie. The downside for the AUD/USD pair, however, remains cushioned, at least for the time being, warranting some caution for aggressive bearish traders and positioning for any meaningful slide.
The Australian Dollar (AUD) continues to draw support from the Reserve Bank of Australia’s (RBA) hawkish outlook, indicating that some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable time. The Federal Reserve (Fed), on the other hand, is expected to pause its year-long rate-hiking cycle, which acts as a headwind for the USD and lends support to the AUD/USD pair.
The markets, meanwhile, have also started pricing in the possibility that the US central bank will start cutting interest rates later this year. This, in turn, suggests that the path of least resistance for the buck is to the downside and supports prospects for the emergence of some dip-buying around the AUD/USD pair. Traders, however, might prefer to wait for the release of the latest US consumer inflation figures before placing fresh bets.
The crucial US CPI report will play a key role in influencing expectations about the Fed’s next policy move and drive the USD demand in the near term. Apart from this, the broader risk sentiment should provide some meaningful impetus to the AUD/USD pair and allow traders to grab short-term opportunities ahead of Chinese inflation figures, due during the Asian session on Thursday.
Technical Levels: Supports and Resistances
AUDUSD currently trading at 0.6754 at the time of writing. Pair opened at 0.6762 and is trading with a change of -0.12 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6754 |
| 1 | Today Daily Change | -0.0008 |
| 2 | Today Daily Change % | -0.1200 |
| 3 | Today daily open | 0.6762 |
The pair is trading above its 20 Daily moving average @ 0.6693, above its 50 Daily moving average @ 0.6685 , below its 100 Daily moving average @ 0.679 and above its 200 Daily moving average @ 0.6727
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6693 |
| 1 | Daily SMA50 | 0.6685 |
| 2 | Daily SMA100 | 0.6790 |
| 3 | Daily SMA200 | 0.6727 |
The previous day high was 0.6787 while the previous day low was 0.6746. The daily 38.2% Fib levels comes at 0.6762, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6771, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.6743, 0.6725, 0.6703
- Pivot resistance is noted at 0.6784, 0.6805, 0.6824
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6787 |
| Previous Daily Low | 0.6746 |
| Previous Weekly High | 0.6757 |
| Previous Weekly Low | 0.6607 |
| Previous Monthly High | 0.6806 |
| Previous Monthly Low | 0.6574 |
| Daily Fibonacci 38.2% | 0.6762 |
| Daily Fibonacci 61.8% | 0.6771 |
| Daily Pivot Point S1 | 0.6743 |
| Daily Pivot Point S2 | 0.6725 |
| Daily Pivot Point S3 | 0.6703 |
| Daily Pivot Point R1 | 0.6784 |
| Daily Pivot Point R2 | 0.6805 |
| Daily Pivot Point R3 | 0.6824 |
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