AUD/USD ripe for another upside test beyond 20-d sma at 0.7433 cap?

Currently, AUD/USD is trading at 0.7428, up 0.02% on the day, having posted a daily high at 0.7434 and low at 0.7423.

AUD/USD has been up to meet a critical resistance overnight being the 20 daily sma at 0.7433. The Aussie was capped there but the greenback is ripe for another challenge at this area in the day ahead should the sentiment for the dollar continue to weaken on the political front in Asia with ongoing headlines probing the Russain/Trump exploitation scandal. The DXY was making fresh lows in the lowest territory since mid-Nov business and despite US data in Industrial Production coming in at the highest in three years.

AUD/USD 1-3 month: 

Analysts at Westpac explained that the modestly weaker than expected Australian CPI outcome has added yet another factor capping the Aussie: "Softer commodity prices; a more protectionist stance from US President Trump, and higher US yields if the Fed raises rates in June as we expect. These leave the A$ with strong resistance at 0.76. We expect to see it heading towards 0.74 by year end," the analysts argued.

AUD/USD levels

AUDUSD: The dailies appearing to be turning a little higher - Jim Langlands

Valeria Bednarik, chief analyst at FXStreet noted that the pair held below its previous weekly high, and said that it lacks enough upward momentum to confirm further gains, according to technical readings, given that in the 4 hours chart, "indicators lack directional strength, holding flat within a positive territory. The pair, however, met buying interest on approaches to a bullish 20 SMA, currently providing support at 0.7400," she added while explaining that further gains will depend on the price's ability to surpass a daily descendant trend line coming from this year high at 0.7460 for this Wednesday."