AUD/USD bulls target a break of 0.75 and the 200 dma

Currently, AUD/USD is trading at 0.7501, up 0.11% on the day, having posted a daily high at 0.7504 and low at 0.7488.

Wall Street marches on in the Trump rally to new record highs

AUD/USD has been probing the 0.75 handle on a better risk environment for the Aussie bulls to load up while oil driven demand sentiment was lifting the commodity sector at the start of the week.

Oil testing the downside, challenging the bullish gap

However, WTI has fallen back from the highs through the $48 handle,dropping back to the $51.20 support overnight, but that has not stopped dollar bears keeping a lid on the greenback's positive Trump fuelled trajectory of late. During the US session, DXY fell below 101.00 and bottomed at 100.80.

US dollar index back below 101.00, retreats ahead of FOMC meeting

However, stocks on Wall Street continued to climb to fresh record highs, with the Dow closing at a new record high while the S&P 500 shed some of the six consecutive gains made over last week, since Trump was elected, fueling end of year life into the markets for risk-on November and December months so far - despite australia's questional economic performace and recent contractionary print in GDP Q3, it is managing a strong performace ahead of the FOMC on Wednesday. 

FOMC preview: We expect a rate hike and no major changes in forecasts - Danske Bank

"A glimmer of positive momentum threatens an upside break of the recent 0.7400-0.7500 range, the US dollar looking tired," explained analysts at Westpac, offering a long-term outlook below.

AUD/USD 1-3 month:

"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

Current price is 0.7501, with resistance ahead at 0.7504 (Daily High), 0.7506 (Weekly Classic R1), 0.7506 (Yesterday's High), 0.7514, (200 DMA ) 0.7526 (Daily Classic R2) and 0.7532 (Daily 200 SMA). Next support to the downside can be found at 0.7493 (Weekly High), 0.7491 (Daily Open), 0.7490 (Daily Classic R1), 0.7488 (Daily Low) and 0.7481 (Hourly 20 EMA).