AUD/USD: consolidates at 0.76 handle with bearish bias to 0.7400

Currently, AUD/USD is trading at 0.7593, up 0.04% on the day, having posted a daily high at 0.7596 and low at 0.7585.

Forex today: US dollar and U.S. rates higher on Fed expectations

AUD/USD is consolidated around the 0.76 handle but retains negative momentum such that a move towards 0.7500 is on the cards during the week ahead as according to analysts at Westpac sighting the main event for the day ahead as being the Chinese trade data. 

AUD/USD 1-3 month: 

The analysts at Westpac are targeting lower to 0.7400 on a medium-term outlook. "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

On the decision to stay put overnight, AUD/USD fond territory back on to the 0.76 handle targeting a recovery of the recent sell-off from 0.7640. However, the bid tone soon turned lower and the high was 0.7632. The 20 dma is located at 0.7652 today and marks a tough resistance zone ahead of the YTD highs at 0.7740. Towards the end of the year, the market was failing ahead of 0.7778/.7850 2016 highs and the 38.2% retracement.  To the downside, a break of 0.7520 opens 0.7450 (the 38.2% and 50% retracements).