AUD/USD settled and awaits new catalyst after Trump, headed to 0.7525?

Currently, AUD/USD is trading at 0.7445, down -0.04% on the day, having posted a daily high at 0.7452 and low at 0.7438.

AUD/USD has been a strong bid overnight on the back of the freak-auction outcome in the 10-year that took the US yields off their perch and sent the dollar to the sharks just as Trump failed to deliver on anything concrete in respect to his fiscal policies and rather battled it out with the press over fake news allegations, a bust up with CNN and bullish rhetoric in respect to making America great again - indeed leave many questions unanswered for markets. The greenback dropped below the 102 handle in the DXY and shot up from 0.7351 to 0.7470 the highs before meeting supply and easing back to current spot levels.

Trump's news conference left many questions for markets - Westpac

Meanwhile, analysts at Westpac suggested that the upward momentum persists and the next area for pause being 0.7525 (Dec peak). "Trump’s USD-disappointing press conference has caused long-USD positions to be pared."

AUD/USD 1-3 month: 

The analysts at Westpac look for AUD/USD to drop below 0.7200. "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed’s assertive tightening projections 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 should improve in Q4 and Q1, but these forces are subservient to the US dollar’s trend. There’s also the issue of Australia’s AAA rating, seen at risk. (23 Dec)"

AUD/USD levels

Spot is presently trading at 0.7444, and next resistance can be seen at 0.7447 (Daily Open), 0.7450 (Daily Classic R3), 0.7452 (Daily High), 0.7468 (Weekly Classic R2) and 0.7473 (Yesterday's High). Next support to the downside can be found at 0.7438 (Daily Low), 0.7419 (Daily Classic R2), 0.7407 (Hourly 20 EMA), 0.7394 (Daily Classic R1) and 0.7386 (Weekly Classic R1).