AUD/USD is sideways/choppy around spot 0.7230 despite strong dollar preference

Currently, AUD/USD is trading at 0.7229, up 0.09% on the day, having posted a daily high at 0.7233 and low at 0.7214.

Wall Street in the green, dollar ripped, oil dumped

After a day of strong US data overnight, the AUD/USD is now neutral again, trading inside a range between 0.7160-0.7245 while the dollar ripped overnight making fresh 14 year highs leading to a collapse in the oil price and setting the stage for a volatile first half of the year while we await Trump to take the stage  - history in the making. 

AUD/USD 1-3 month: 

Analysts at Westpac offered a three month outlook and expect Aussie to fall 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."

Commodities and AUD/USD?

The analysts at Westpac suggested 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 said that 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 0.7229, and next resistance can be seen at 0.7233 (Daily High), 0.7243 (Yesterday's High), 0.7255 (Weekly Classic R1), 0.7256 (Daily Classic R2) and 0.7285 (Daily 20 SMA). Support below can be found at 0.7223 (Daily Open), 0.7223 (Weekly High), 0.7222 (Daily Classic R1), 0.7218 (Hourly 20 EMA) and 0.7214 (Daily Low).