AUD/USD intermarket: AUD/USD down -0.15% on the day at 0.7633 post Yellen's hawkishness

Currently, AUD/USD is trading at 0.7633, down -0.15% on the day, having posted a daily high at 0.7698 and low at 0.7633.

Despite Chinese reflation data overnight, albeit an economy marked by US pressures in FX manipulation, AUD/USD has been on thin ice this week with a resurgence in the dollar that was battling with the 100 handle and now has taken on the 101 handle post-Yellen's hawkish remarks: 

• Waiting too long to tighten would be unwise - Fed's J.Yellen
• More rate hikes may be appropriate in upcoming meetings - Fed's J.Yellen
• Fed's Yellen agrees with core principles of Trump's executive order on financial reform

The Aussie will be supported by the commodities sector that indeed is directly correlated to the greenback and that has benefitted very well in 2017 in the turnaround in the Trumpflation trade. However, there has been a correction in copper and industrial metals in recent sessions and that too is weighing on the Aussie. Gold is also positively correlated to the Aussie and the yellow metal is offered from $1235 highs to $1222 lows on the day so far. All in all, not looking very bullish on the Aussie on an intermarket basis and the main focus stays wit the US dollar, developments in the Fed and US economy while keeping a close eye on Trump.

AUD/USD levels

Bulls should be wary of the triple top scenario at 0.7695 and now a break below the 100 and 200-hour ma's at the mid point of the 0.76 handle. The buying dips strategy is jeopardised, certainly if 0.7630 were to give out opening the 0.7600 round number up for a test of 0.7580 level. To the upside, the family level of 0.7680 ahead of a break to 0.7720/40 triple top guarding Nov highs just shy of the psychological 0.7800 level.