AUD/USD riding the bid on the greenbacks offer, up to 0.7220 resistance again

Currently, AUD/USD is trading at 0.7218, up 0.50% on the day, having posted a daily high at 0.7225 and low at 0.7168.

AUD/USD has been caught up in a sell off in the greenback in this holiday trade where moves can be exaggerated without a profound theme of direction in moves - however, price action has been one-sided in respect to the dollar this holiday and that is to the downside.

We are awaiting full markets to return in the New Year and it might be expected to see the dollar bounce back on continued optimism for the US economy at least by participants who have latched onto the theme of Trump's policies being a positive while running wider deficits and the dollar shortage on the offshore market becoming tighter as the Fed sets a out a hawkish rhetoric for the years ahead.

AUD/USD levels

Spot is presently trading at 0.7219, and next resistance can be seen at 0.7222 (Yesterday's High), 0.7225 (Daily High), 0.7248 (Daily Classic R2), 0.7273 (Daily Classic R3) and 0.7273 (Weekly Classic R1). Next support to the downside can be found at 0.7218 (Hourly 200 SMA), 0.7217 (Weekly Classic PP), 0.7215 (Daily Classic R1), 0.7210 (Weekly High) and 0.7203 (Hourly 20 EMA).

We had some thoughts on next year's outlook: