AUD/USD: downside bias favoured towards 0.7200

Currently, AUD/USD is trading at 0.7412, up 0.04% on the day, having posted a daily high at 0.7416 and low at 0.7403.

DXY inter-markets: consolidation appears likely

AUD/USD was consolidated overnight in the Thanksgiving holiday US session and sucking up the greenbacks dominance of late with strong data, such as durable goods, and the FOMC minutes that showed that members are advocating for rate hikes as the grounds for higher rates are looking more appropriate. 

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AUD/USD has attracted a slight bid in Asia just ahead of the Tokyo open although analysts at Westpac suggest that the pair looks vulnerable to further declines during the week ahead.

The analysts at Westpac offered AUD/USD in a 1-3 month outlook: "The US dollar has had an impressive rise since the US election and has potential to rise further, not least because the Fed will probably hike in December. Against that, coal and iron ore are more likely to sustain their dramatic rises during the months ahead. We target 0.72."

AUD/USD levels

With spot trading at 0.7412, we can see next resistance ahead at 0.7416 (Daily High), 0.7417 (Weekly Classic PP), 0.7418 (Weekly High), 0.7420 (Yesterday's High) and 0.7431 (Daily Classic R1). Support below can be found at 0.7410 (Daily Open), 0.7403 (Daily Low), 0.7402 (Daily Classic PP), 0.7400 (Hourly 20 EMA) and 0.7384 (Hourly 100 SMA).