AUD/USD turns positive, at session peak near 0.7375

Having retested multi-month lows support near 0.7330 region, the AUD/USD pair staged a goodish recovery and refreshed session tops during early European session.

Currently trading around 0.7370 region, the pair benefitted from a modest recovery in commodity prices, especially copper, which tends to boost demand for commodity-linked currencies, including the Australian Dollar. 

Adding to this, subdued US Dollar price-action, led by a softer tone surrounding the US treasury bond yields, further collaborated to the pair's up-move in the past hour or so. 

Meanwhile, the pair also derived some support from a strong rally in the AUD/NZD cross led by dovish RBNZ, saying the recent jump in consumer prices may only be temporary. 

Next in focus would be the US economic docket, featuring the release of weekly jobless claims and PPI print, ahead of Fedspeaks. 

Technical levels to watch

Immediate resistance is pegged near 0.7385 level, above which the pair is likely to surpass the 0.7400 handle and head towards testing its next hurdle near 0.7425-30 region. On the downside, 0.7345-40 area now becomes immediate support to defend, which if broken would turn the pair vulnerable to extend its near-term downward trajectory even below the 0.7300 handle towards testing its next support near 0.7275-70 area.