AUD/USD can drift up through 0.75 today

Currently, AUD/USD is trading at 0.7479, up 0.03% on the day, having posted a daily high at 0.7500 and low at 0.7433.

Dollar index drops modestly ahead of employment data

AUD/USD is consolidated around the 0.7480 resistance level after a number of tentative attempts through the 0.75 level to no avail. The greenback, although running out of momentum, is still robust and underpinned overnight by the US GDP and consumer confidence that both put the US economy in a positive light ahead of the nonfarm payrolls showdown at the end of this week and last one before the final FOMC meeting in the middle of Dec. 

Economic wrap: US data strong, PCE on the cards next - Westpac

The markets remains convinced of a rate hike of at least 25bps by the Fed next month, especially with longer term yields on the rise post the Trump victory and expectations of 2017 increased fiscal spending by the government under his presidency. For today, we have a number of key releases from Australia, including ANZ business confidence and building permits. The ANZ business confidence survey will also include an inflation expectations component.

Analysts at Westpac suggested that the US dollar’s consolidation allows AUD/USD to break above 0.7500 today, adding AUD/USD in 1-3 month outlook as follows:

"The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead, not least because the Fed will probably hike in December. Against that, coal and iron ore are more likely to sustain their dramatic rises during the months ahead. We target 0.73."

AUD/USD levels

With spot trading at 0.7480, we can see next resistance ahead at 0.7496 (Yesterday's High), 0.7500 (Daily High), 0.7501 (Daily 20 SMA), 0.7505 (Daily Classic R1) and 0.7508 (Weekly Classic R1). Support below can be found at 0.7478 (Daily Open), 0.7478 (Weekly High), 0.7469 (Daily Classic PP), 0.7467 (Hourly 20 EMA) and 0.7442 (Daily Classic S1).