AUD/USD capped through 0.75 handle, consolidating the Trump USD sell-off
|Currently, AUD/USD is trading at 0.7481, down -0.15% on the day, having posted a daily high at 0.7496 and low at 0.7481.
AUD/USD has been capped through the 0.75 handle after reaching 0.7520 overnight before the greenback started to rebound in a minor correction while the DXY was 0.6% down on the day in the US session with US 10yr's extending the post-Trump news conference where he failed to deliver on anything that markets could ground upon in respect to fiscal policy and the sentiment for a stronger dollar subsequent of reflation in the US economy. While the pair is lower, analysts at Westpac remain bullish in the immediate outlook for a retest on the 0.75 handle, "Upward momentum persists, the 0.7525 area (Dec peak) providing some resistance."
Trump reflation trades unwinding - BTMU
AUD/USD 1-3 month:
Further out analysts look for a test below 0.7200." The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed's assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that coal and iron ore are likely to sustain a good portion of their dramatic rises, and economic data should improve in Q4 and Q1, but these forces are subservient to the US dollar's trend. There's also the issue of Australia's AAA rating, seen at risk."
AUD/USD levels
Spot is presently trading at 0.7482, and next resistance can be seen at 0.7485 (Hourly 20 EMA), 0.7493 (Daily Open), 0.7495 (Daily Classic R1), 0.7496 (Daily High) and 0.7498 (Monthly High). Next support to the downside can be found at 0.7481 (Daily Low), 0.7468 (Weekly Classic R2), 0.7446 (Weekly High), 0.7430 (Yesterday's Low) and 0.7424 (Daily Classic PP).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.