AUD/USD: rallies on back of dollar weakness, sustainable?

Currently, AUD/USD is trading at 0.7347, up 0.10% on the day, having posted a daily high at 0.7351 and low at 0.7335.

The greenback has been on the backfoot and the commodities have been able to rally on the heel of that while Aussie catches a bid without being able to make headway on its own accord. US yields were lower overnight and the dollar dropped a considerable amount of ground across the board on mixed data and outlooks for the Fed and the US economy. Analysts at Westpac explained that the Aussie is in a corrective rebound and targets 0.7370 next. However, the questions is whether this is a sustainable move - probably not?

DXY dropping in wake of skepticism for Fed dot plot, eyes on 99.85

AUD/USD 1-3 month:

"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," offered analysts at Westpac.

AUD/USD levels

Current price is 0.7347, with resistance ahead at 0.7351 (Daily High), 0.7358 (Yesterday's High), 0.7380 (Daily Classic R3), 0.7498 (Monthly High) and 0.7508 (Daily 200 SMA). Next support to the downside can be found at 0.7340 (Daily Open), 0.7340 (Weekly High), 0.7340 (Weekly Classic R3), 0.7335 (Daily Low) and 0.7333 (Daily Classic R2).