AUD/USD: consolidating in a minor recovery of the greenback's rally

Currently, AUD/USD is trading at 0.7358, up 0.03% on the day, having posted a daily high at 0.7363 and low at 0.7353.

Market wrap: dollar makes further gains, big levels across the board - Westpac

AUD/USD has extended the downside overnight with another strong performance in the greenback on the back of inflationary risks in the US economy and a hawkish Fed scrambling to get ahead of the curve. US dollar index extends rally to fresh 13-year highs above 103.00

Analysts at Westpac noted that momentum has flipped to negative, thanks to the US dollar’s surge yesterday, with the next target at 0.7310, adding a longer term outlook below.

AUD/USD 1-3 month: 

"Below 0.7300. 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

With spot trading at 0.7359, we can see next resistance ahead at 0.7360 (Daily Classic S1), 0.7362 (Weekly Classic S2), 0.7363 (Daily High), 0.7385 (Hourly 20 EMA) and 0.7409 (Weekly Classic S1). Support below can be found at 0.7357 (Daily Open), 0.7356 (Weekly Low), 0.7353 (Daily Low), 0.7337 (Monthly Low) and 0.7337 (Yesterday's Low).