AUD/USD robust on the bid while dollar sells-off and Trump reflation trades whacked

Currently, AUD/USD is trading at 0.7560, down -0.03% on the day, having posted a daily high at 0.7571 and low at 0.7559.

AUD/USD benefited from the Trump reflation trade being unwound some more today after Trump's comments about the dollar and corporation tax with US markets returning from their holidays and long weekend. The DXY dropped after an initial spike and trades on thin ice.

US dollar index tumbles toward 100.00

Analysts at Westpac explained that the Aussie continues to gain support from solid Chinese bulk prices and the general correction in USD with scope for a test of 0.7570/85 in the very near term, "Should risk aversion build, the 0.7430-50 should provide support."

US dollar index tumbles toward 100.00

AUD/USD 1-3 month:

Analysts at Westpac are expecting the Aussie to drop back below 0.7200 in the medium term, "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."

AUD/USD levels

Spot is presently trading at 0.7560, and next resistance can be seen at 0.7563 (Daily Open), 0.7563 (Monthly High), 0.7563 (Weekly High), 0.7567 (Yesterday's High) and 0.7571 (Daily High). Next support to the downside can be found at 0.7559 (Daily Low), 0.7553 (Daily Classic R3), 0.7536 (Hourly 20 EMA), 0.7530 (Daily Classic R2) and 0.7503 (Daily Classic R1).