AUD/USD bulls waiting to pounce again, testing 0.7500

AUD/USD is currently trading a fee pips shy of the 0.75 handle at 0.7496 with a session high of 0.7506 and a low of 0.7476.

Fitch: Australian banking sector on a negative outlook

With much of the attention elsewhere around the weekend's Brexit stories of a hard Brexit speech from PM May this week, AUD/USD is consolidated with a bullish bias at the start of the week, having rallied from below 0.7200 and around 0.7160 on the sell-off in the greenback in 2017 as market ponder as to whether Trump to the US economy means all that was first speculated.

Dollar correction over? - BBH

On the back of the dollar weakness, analysts at Brown Brothers Harriman noted that the Australian dollar rose 2.5% against the US dollar last week. "In fact, it rose every day last week and in eight of the past nine sessions. It the three-week advance, it has gained about 4.25%. On January 2, it traded down to almost $0.7165, and on January 12, it reached nearly $0.7520," explained the analysts, adding, "The high before the Fed's mid-December rate hike was $0.7525. The $0.7540 area corresponds to the 61.8% retracement of its losses since the US election."

US economic outlook: risks remain significant - Nomura

AUD/USD levels

The analysts at Brown Brother Harriman explained that the Australian dollar has not closed below its five-day moving average (~$0.7425) since January 2. "A loss of this area could be a preliminary sign that the upside correction is over. The Slow Stochastics look set to cross lower, and the MACDs appear to be peaking."

Meanwhile, analysts at Commerzbank suggested that, currently, the market will have to go sub 0.7380 to alleviate immediate upside pressure and trigger a slide back to the 0.7312/00 then 0.7161/64. "Above 0.7525 we would allow for the 0.7648 2013-2016 channel (where it should fail) . Even this move will remain within the realms of a correction only. We view AUD/USD as having topped longer term and maintain a bearish bias."