AUD/USD: minor recovery back in play, higher low and risk on, 0.76 here we come?

Currently, AUD/USD is trading at 0.7549, down -0.46% on the day, having posted a daily high at 0.7600 and low at 0.7515.

AUD/USD has been two way business and is back on the inor recovery from a higher low, up from Asia's low post poor Aussie data. Risk is back on today and stocks rally making recprd highs.

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However, the main driver comes in the dollar that has been softer against nearly all the major currencies. 

"Participants appear to be growing increasingly frustrated with emerging priorities of the new US Administration," explained analysts at Brown Brothers Harriman explained. "They want to hear more details and discussion of the tax reform, deregulation, and infrastructure plans.  However, the priority today is on authorizing the construction of a wall between the US and Mexico and possible action on immigration from "terror-prone" countries, according to press reports." 

In respect to the Aussie Q4 CPI miss, it was not major, but it has spurred talk that the central bank could cut rates again, with some thinking as early as next month, as noted by the analyst s at BBH.  "Consumer prices in Q4 rose 0.5% instead of 0.7% as it did in Q3 and as the median forecast in the Bloomberg survey had expected.  The year-over-year pace was 1.5% (up from 1.3%), just off the 1.6% anticipated.  The trimmed mean and weighted median were also 0.1 percentage points less than expected.  While the RBA cannot be pleased with the sharpness of the Australian dollar's appreciation, we are not convinced that the miss on Q4 CPI is sufficient to push the central bank into another rate cut."

AUD/USD levels

Current price is 0.7549, with resistance ahead at 0.7552 (Hourly 20 EMA), 0.7553 (Yesterday's Low), 0.7554 (Daily Classic S1), 0.7561 (Hourly 100 SMA) and 0.7583 (Daily Classic PP). Next support to the downside can be found at 0.7536 (Hourly 200 SMA), 0.7533 (Weekly Classic PP), 0.7525 (Daily Classic S2), 0.7515 (Daily Low) and 0.7512 (Weekly Low).