The Australian dollar gained over one and a half cents against the US dollar following the U.S. interest rate hike but failed to crack through 78 cents.
Last week the Australian dollar posted some impressive gains early but ended the week flat and stranded at 77 cents.
The first interest rate hike in the U.S. surprised no one and led to a brief rally in the AUD/USD as the greenback lost ground.
For the last year, the AUD/USD exchange rate has bounced between 0.7150 and 0.7800.
On a couple of occasions, it's made it above 77 cents but has not managed to break through 78 cents.
This barrier of 78 cents has become a 'level of resistance' for the Australian Dollar.
While it might take some time to crack through this ceiling, if the AUD does move above 78 cents and holds above it, it's more likely to stay above there in the short term.
While the Aussie Dollar remains capped against the US dollar, it has not had any problems moving higher again the Euro.
In the last year, the AUD/EUR has steadily moved higher, making it cheaper if you are travelling to Europe this year.
Following the interest rate hike in the U.S. and the Dutch Election, the next major event this year is when the UK evokes Article 50 to officially exit the EU.