AUD/USD: Bulls regain control, 0.7400 back on sight

Broad based USD selling gathered steam last hour, which offered the much-needed relief to the AUD/USD pair from poor economic news-driven downbeat momentum.

AUD/USD bounces-off lows below 50-DMA at 0.7356

Currently, the AUD/USD pair jumps +0.36% to trade near fresh daily highs of 0.7384, bouncing-off a brief dip below 0.7350 levels. The AUD/USD pair rebounded more-than 40-pips from session troughs over the last hours, as the US dollar resumed yesterday’s sell-off against its major rivals, after having witnessed a brief downside consolidation phase in the overnight trades.

The Aussie traders appear to look past bearish Aus retail sales and Chinese CPI figures, as the price-action around the spot remains largely driven by the USD moves. Meanwhile, China December CPI arrived at 2.1% y/y vs 2.2% expected, while Australia's retail sales for the month of November came at +0.2% vs 0.4% expected and 0.5% last. 

Further, a recovery seen across the commodities’ space, particularly in oil and copper prices, helped the resource-linked AUD to stage a solid comeback. With the key Asia-pac economic updates out of the way, all eyes now remain on the upcoming US jobs data for some fresh incentives.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7390 (daily R1) above which gains could be extended to the next hurdle located 0.7356 (50-DMA) and 0.7400 (zero figure). On the flip side, the immediate support located 0.7336 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7300 (round figure) and below that at 0.7280 (10-DMA).