AUD/USD: consolidates on broad dollar weakness, end of dollar rally?

Currently, AUD/USD is trading at 0.7361, up 0.33% on the day, having posted a daily high at 0.7384 and low at 0.7309.

AUD/USD has been consolidating the downside with broad dollar weakness and a bid in oil with fresh highs in WTI to $47.69. Gold is stabilizing and industrials are also performing on the bid. The dollar could be running out of steam here with the DXY testing back below 101 handle, US Dollar Index. The Trump factor has two sides to the coin and there is plenty of uncertainty ahead and by no means does a Fed hike in December bring certain dollar strength. In respect to domestic fundamentals for the Aussie, attention will be back on CPI, but it is a lean week for data and events, with only Q3 construction that will be released on Wednesday along with some RBA speak on the docket. Instead, markets will be all over the US data as we head towards the end of the month and the FOMC meeting in December. 

AUD/USD levels

For now, the Australian dollar has fallen out of favor.  The $0.7330 area represents a 50% retracement of this year's rally off the January low near $0.6830. The current price is 0.7361, with resistance ahead at 0.7364 (Daily Classic PP), 0.7384 (Daily High), 0.7397 (Daily Classic R1), 0.7417 (Weekly Classic PP) and 0.7424 (Yesterday's High). Next support to the downside can be found at 0.7356 (Hourly 20 EMA), 0.7337 (Monthly Low), 0.7337 (Weekly Low), 0.7330 (Yesterday's Low) and 0.7328 (Daily Open).