AUD/USD: bulls looking for a test of 0.7600, USD remains fragile

Currently, AUD/USD is trading at 0.7560, up 0.15% on the day, having posted a daily high at 0.7564 and low at 0.7549.

AUD/USD is consolidated with a bullish bias, looking for a break of the channel resistance and 27th Jan high of 0.7572 and for a test of the psychological 0.7600 mark. The action overnight was two way business across the board in respect to the greenback as investors take partial cover in the wake of Trump's fragile authority in respect to the latest developments described here in full around his weekend immigration orders of policy placed on certain countries.  

AUD/USD 1-3 month: 

Analysts at Westpac are bearish on a medium term  to 0.7400. "The US dollar’s impressive post-election rally may have paused, but still has potential to rise further during the months ahead. The Fed’s assertive tightening bias 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 for Q4 and Q1 should improve, but these forces are subservient to the US dollar’s trend. Australia’s AAA rating will remain an issue into the May budget."

AUD/USD levels

The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bullish. Meanwhile, daily RSI is in neutral territory at 61.43.  On the hourly AUD/USD chart, the 200 SMA is declining and currently at 0.7544, down from the previous hour close at 0.7553.