AUD/USD: better bid headed towards the 0.73 handle on dollar weakness

Currently, AUD/USD is trading at 0.7279, down -0.05% on the day, having posted a daily high at 0.7289 and low at 0.7274.

AUD/USD has been better bid from the 0.7200 support and psychological level and is up to test the 0.7280 level as the dollar gives back some ground and allows commodities, such as WTI, to rally and that is all supportive to the Aussie with the momentum turning positive and exposes the 0.7300 handle.

WTI rallies to test 4hr 20 sma at 52.80

AUD/USD 1-3 month:

Analysts at Westpac, however, have a bearish outlook longer-term and the price is projected to fall 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 0.7279, and next resistance can be seen at 0.7282 (Daily Open), 0.7283 (Weekly High), 0.7286 (Yesterday's High), 0.7289 (Daily High) and 0.7294 (Weekly Classic R2). Support below can be found at 0.7279 (Daily 20 SMA), 0.7276 (Daily Classic R2), 0.7274 (Daily Low), 0.7263 (Hourly 20 EMA) and 0.7255 (Weekly Classic R1).