AUD/USD: steady in dull and sleepy holiday markets, bearish bias

Currently, AUD/USD is trading at 0.7233, down -0.22% on the day, having posted a daily high at 0.7252 and low at 0.7224.

AUD/USD remains consolidated in early Asia.  Momentum remains negative, as noted by analysts at Westpac, adding, "Thanks to the post-FOMC surge in the US dollar’s last week, with the next major multi-day target around the 0.7200 area - (May low)."

AUD/USD 1-3 month Below 0.7300: 

The analysts offered a longer term outlook, explained that 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 0.7235, and next resistance can be seen at 0.7240 (Yesterday's Low), 0.7247 (Monthly Low), 0.7247 (Weekly Low), 0.7248 (Daily Classic PP) and 0.7249 (Hourly 20 EMA). Next support to the downside can be found at 0.7232 (Daily Classic S1), 0.7224 (Daily Low), 0.7207 (Daily Classic S2), 0.7200 (Weekly Classic S1) and 0.7191 (Daily Classic S3).