AUD/USD supported by the 4hr 55 sma and eye son 0.76 handle, risk on

Currently, AUD/USD is trading at 0.7574, up 0.06% on the day, having posted a daily high at 0.7584 and low at 0.7567.

Market wrap: Sterling was the put-performer - Westpac

Risk has been with a bias to risk on and the greenback has been sidelined as commodities run higher, despite the US 10yr yields rising 6.3bp to 2.5283%. In respect to the Aussie, it has been better bid and supported by the 4hr 55 sma. The softer Q4 CI has taken the wind out of the AUD's sails, but it hasn't sustained too much damage, according to analysts at Westpac, adding, "AUD near term levels to watch are 0.7520 and 0.7600."

AUD/USD 1-3 month:

The analysts at Westpac are looking for a test lower and are targeting 0.7400. "The US dollar's impressive post-election rally may have paused, but still has potential to rise further during the months ahead. The Fed's assertive tightening bias 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 for Q4 and Q1 should improve, but these forces are subservient to the US dollar's trend. Australia's AAA rating will remain an issue into the May budget."

AUD/USD levels

"Currently, the market remains bid and we remain unable to rule out a move to the 0.7648 2013-2016 channel (where it should fail)," explained analysts at Commerzbank. 

Spot is presently trading at 0.7576, and next resistance can be seen at 0.7583 (Daily Classic PP), 0.7584 (Daily High), 0.7584 (YTD High), 0.7584 (Monthly High) and 0.7584 (Weekly High). Next support to the downside can be found at 0.7572 (Daily Open), 0.7567 (Daily Low), 0.7562 (Hourly 100 SMA), 0.7557 (Hourly 20 EMA) and 0.7554 (Daily Classic S1).