AUD/USD: looking to break 0.75 as a key resistance

Currently, AUD/USD is trading at 0.7470, down -0.06% on the day, having posted a daily high at 0.7481 and low at 0.7468.

Market wrap: risk aversion increasing, watching sterling - Westpac

AUD/USD was up to meet the 200 dma at the 0.75 handle, but has been unable to breach the psychological level with any conviction. This level is a historic resistance level and a move higher on a daily closing basis would bring the 2016 summer time commencing channel that lasted until November with a range between 0.7420 and 0.7780.

Analysts at Westpac explained that the Aussie continues to gain support from rising Chinese bulk prices and the general correction in USD with scope for a test of 0.7530/40. Should risk aversion build, the 0.7430-50 should provide support.

US dollar ends higher, consolidating around 101.50

AUD/USD 1-3 month:

The analysts at Westpac are bearish longer term looking for a move 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

Current price is 0.7471, with resistance ahead at 0.7475 (Daily Open), 0.7477 (Hourly 20 EMA), 0.7481 (Daily High), 0.7486 (Daily Classic PP) and 0.7500 (Monthly High). Next support to the downside can be found at 0.7468 (Daily Low), 0.7463 (Daily Classic S1), 0.7458 (Yesterday's Low), 0.7453 (Hourly 100 SMA) and 0.7436 (Weekly Classic PP).