AUD/USD: higher levels eyed for today, target 0.75 handle

Currently, AUD/USD is trading at 0.7472, down -0.07% on the day, having posted a daily high at 0.7480 and low at 0.7466.

AUD/USD dropped a handful of pips on the latest potential terror attack news from the UK where it has been announced that there are multiple casualties and fatalities. The dollar is weak across the board though and the demand is back in at 0.7465.

Multiple fatalities reported after explosion at Manchester Arena

The DXY lost the 97 handle and was down on the day lifting the Aussie from 0.7450 to highs of 0.7487. Analysts at Westpac expect that the weakening US dollar continues to lift AUD/USD, towards 0.7500 today.

AUD/USD 1-3 month:

The analyst's longer-term view factors in the modestly weaker than expected Australian CPI outcome that has added yet another factor capping AUD/USD. "Softer commodity prices; a more protectionist stance from US President Trump, and higher US yields if the Fed raises rates in June as we expect. These leave the A$ with strong resistance at 0.76. We expect to see it heading towards 0.74 by year end."

AUD/USD levels

AUD/USD: Looking for a run back towards 0.7500

AUD/USD was breaking down the resistance of the April bearish channel and analysts at Commerzbank explained that above the channel (0.7460) will trigger recovery towards the 0.7538 200 day ma and even potentially the top of the triangle at 0.7722.

AUD/USD longer term outlook is negative:

"It is headed to the base of the range offered by the 2016-2017 support line at 0.7301. This is expected to eventually break down targeting initially 0.7161 December 2016 low then 0.7013 the 2001-2017 support line," explained the analysts.

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