AUD/USD making tracks on 0.73 handle ahead of aussie retail sales

Currently, AUD/USD is trading at 0.7341, up 0.53% on the day, having posted a daily high at 0.7348 and low at 0.7288.

AUD/USD is making small tracks on the 0.73 handle within a significant reversal in 2017 from below the 0.72 handle with the greenback giving back some ground to start the year. For the day ahead, Aussie retail sales and Chinese CPI's are released in Asia while otherwise it is a quiet start on the calendar after last week's nonfarm payrolls and a surprise in wages that surprised as a positive along with hawkish Fed-speak last week.

"The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar," argued analysts at Westpac projecting the price to drop back below 0.7200. "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."

AUD/USD levels

Current price is 0.7341, with resistance ahead at 0.7344 (Daily Classic R1), 0.7348 (Daily High), 0.7357 (Yesterday's High), 0.7385 (Daily Classic R2) and 0.7386 (Weekly Classic R1). Next support to the downside can be found at 0.7340 (Weekly High), 0.7340 (YTD High), 0.7321 (Hourly 20 EMA), 0.7316 (Daily Classic PP) and 0.7296 (Daily Open).

AUD/USD extra gains seen above 0.7350/55 – UOB