• AUD/USD struggles to extend three-day uptrend, grinds higher of late.
  • Fed’s Evans pushes for an ‘expeditious’ rate hike to 2.25-2.50% neutral range.
  • US dollar weakness, hawkish RBA Minutes and covid optimism in China previously favored bulls.
  • Aussie Wage Price Index for Q1 2022 will be crucial considering RBA’s 40 bps talks.

AUD/USD seesaws around the weekly high, pausing a three-day rebound from the two-year low, as it takes rounds to 0.7030 during Wednesday’s Asian session.

The Aussie pair’s latest inaction could be linked to the lack of positive sentiment in the market, mainly triggered by the fresh fears of the US Fed’s faster rate hikes. Also challenging the AUD/USD buyers is the anxiety ahead of the quarterly Wage Price Index from Australia.

Recent comments from Chicago Fed President Charles Evans seem to have weighed on the market’s mood by renewing fears of a faster rate hike as the policymaker said, “(the Fed) Should raise rates to 2.25%-2.5% neutral range 'expeditiously'.” On Tuesday, Fed Chair Jerome Powell and a generally-hawkish St Louis Fed President James Bullard pushed for a 50 bps rate hike and weighed on the USD.

It’s worth noting that chatters of 40 basis points (bps) of a rate hike by the Reserve Bank of Australia (RBA), spread via the Minutes of the latest RBA meeting, underpinned the AUD/USD pair’s upside momentum the previous day. On the same line were headlines suggesting Shanghai’s nearness to reversing the covid-led activity restrictions. Also favoring the quote were headlines suggesting more investments from China and firmer prices of equities, as well as commodities.

That said, the Wall Street benchmarks closed positive even if the US 10-year Treasury yields rose nearly 10 bps to 2.99% at the latest. The S&P 500 Futures struggle, however, around 4,090 by the press time.

Moving on, Aussie Wage Price Index for Q1 2022, expected 0.8% QoQ versus 0.7% prior, will be important for immediate direction amid hawkish concerns over RBA. Following that, the US housing numbers and risk catalysts will be crucial for trading impetus.

Technical analysis

A clear upside break of the 10-DMA level of 0.6984, as well as lows marked during January 2022 surrounding 0.6965, directs AUD/USD buyers toward a monthly resistance line near 0.7080.

Additional important levels

Overview
Today last price 0.703
Today Daily Change 0.0059
Today Daily Change % 0.85%
Today daily open 0.6971
 
Trends
Daily SMA20 0.7112
Daily SMA50 0.7298
Daily SMA100 0.7245
Daily SMA200 0.7269
 
Levels
Previous Daily High 0.6983
Previous Daily Low 0.6872
Previous Weekly High 0.7074
Previous Weekly Low 0.6828
Previous Monthly High 0.7662
Previous Monthly Low 0.7054
Daily Fibonacci 38.2% 0.6941
Daily Fibonacci 61.8% 0.6915
Daily Pivot Point S1 0.6901
Daily Pivot Point S2 0.6832
Daily Pivot Point S3 0.6791
Daily Pivot Point R1 0.7012
Daily Pivot Point R2 0.7053
Daily Pivot Point R3 0.7122

 

 

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