AUD/USD catches fresh bids, re-takes 0.7400 amid fresh USD selling

The AUD/USD pair is seen extending its bullish momentum into a third day this Friday, with the bulls now eyeing a test of 0.74 handle, despite moderate risk-aversion.

AUD/USD manages to hold 0.7320 support

Persisting risk-off trades fuelled by negative Asian indices weighs negatively on the US yields, which prompts fresh USD selling across the board and underpins the Aussie.

Moreover, higher gold and copper prices on Comex also provides extra legs to the upbeat tone seen behind the resource-lined AUD. Gold rises +0.22% to $ 1227, while Copper futures trade modestly higher around $ 2.509/ pound.

The spot also finds support from strengthening AUD/NZD cross amid weaker NZD/USD, as dovish RBNZ still continues to weigh alongside downbeat NZ business manufacturing index released earlier on the day.

Focus now remains on the US CPI and retail sales data due later on Friday for fresh impetus on the prices.

AUD/USD Levels to watch   

At 0.7386, the pair finds the immediate resistance at 0.7399 (May 9 high) above which gains could be extended to the next hurdle located 0.7420 (classic R2/ Fib R3) and 0.7462 (20-DMA). On the flip side, the immediate support is located at 0.7300 (zero figure). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7284 (early Jan lows) and below that 0.7250 (psychological levels).