AUD/USD: bulls eye the 2016 highs at 0.7830

Currently, AUD/USD is trading at 0.7660, down -0.02% on the day, having posted a daily high at 0.7665 and low at 0.7657.

Commodities: gold on the up as political tensions rise - ANZ
AUD/USD has bene supported on commodities and copper in particular, while at the same time, the trade balance was supportive yesterday and the stronger data should provide confidence to RBA policymakers ahead of next week’s policy decision - The RBA is expected to hold at 1.50%. The US dollar is also struggling and rightly so according to analysts at Bank of Tokyo Mitsubishi: USD: negative momentum is warranted - BTMU

For today, the momentum continues to the upside and analysts at Westpac target the 0.7780 area next (Nov high).

AUD/USD 1-3 month: 

However, on a more medium-term basis, the same analysts see AUD/USD lower to 0.7400. "The US dollar’s impressive post-election rally may have paused, but still has potential to rise further during the months ahead. The Fed’s assertive tightening bias 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 for Q4 and Q1 should improve, but these forces are subservient to the US dollar’s trend. Australia’s AAA rating will remain an issue into the May budget."

Nonfarm payrolls preview:

NFP Forecast: Will strong payrolls & wage growth help US dollar regain poise?

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair has entered bullish territory, with scope to extend its gains at least up to the 0.7830 price zone, 2016 high. "In the 4 hours chart, the price is well above a bullish 20 SMA, whilst technical indicators are modestly retreating from overbought readings, rather reflecting the latest pullback than supporting some further declines. The pair has an immediate support around 0.7650, but can correct down to 0.7600 without actually affecting the positive bias."