AUD/USD tucked in below 0.74 handle, a sell on rallies through there?

Currently, AUD/USD is trading at 0.7366, down -0.06% on the day, having posted a daily high at 0.7375 and low at 0.7364.

AUD/USD continues to attract a bid, albeit momentum has stalled and the pair moves into a phase of consolidation here. A test of 0.7400 could be on the cards on a decline of US yields and with market hysteria over the Fed and Trump calming, there is still plenty of dollars to unwind in a market heavily long of the greenback.

However, further out, long dollar is likely to remain the theme with the reserve currency acting as a safehaven and the Fed likely to increase interest rates again and potentially as soon as the summer time while the RBa may need to think twice about its chilled-out approach if data continues to decline and economic activity in China falls.

AUD/USD 1-3 month:

Analysts at Westpac are looking for levels below 0.7200. "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."

Key questions for 2017 - ANZ

AUD/USD levels

Spot is presently trading at 0.7366, and next resistance can be seen at 0.7371 (Daily Open), 0.7375 (Daily High), 0.7386 (Weekly Classic R1), 0.7387 (Yesterday's High) and 0.7392 (Daily Classic R1). Support below can be found at 0.7364 (Daily Low), 0.7362 (Hourly 20 EMA), 0.7356 (Weekly High), 0.7356 (YTD High) and 0.7340 (Daily Classic PP).