AUD/USD: headed through 0.8000?

• AUD/USD bears and bulls can't outpace the other.
• AUD/USD has room to extend above 0.8000 still.

AUD/USD was consolidating between 0.7936/75 in NY and is trading in early Asia trading at 0.7960, down -0.03% on the day, having posted a daily high at 0.7964 and low at 0.7956.

AUD/USD was taking advantage of a weak dollar at the start of this week although the upside momentum was halted in late Asia and with Europeans taking the pair down to 0.7938 as Brent fell off a cliff. 

Forex today: US traders clean up the mess returning from holidays

Westpac's outlook

Analysts at Westpac explained that AUD/USD should consolidate between 0.7920 and the key 0.7980-00 area in advance of both consumer confidence and Thursday’s employment report.

AUD/USD 1-3 month: 

Over the course of Q1 2018, we look for AUD/USD to return to the 0.75 area seen in early Dec 2017. This should occur if interest rate markets move closer to Westpac’s view of no change in the RBA cash rate this year and if the prospect of increased supply cools the recent commodity price rally. But a firmer US dollar is probably necessary to get as far as 0.75 (9 Jan)"

For today, we have the Westpac-MI consumer sentiment in focus.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, a bullish 20 SMA extended its advance below the current level and above the mentioned Fibonacci resistance, while technical indicators hold directionless near overbought readings. "The pair has room to extend its advance on a break above 0.8000 a major psychological burden  that once cleared, will probably result in a stronger advance."