AUD/USD better bid, re-attempts 0.7400 on Aus data

Having consolidated previous declines a day before, the AUD/USD pair has caught a bid tone in the Asian trades this Tuesday, making another attempt to reclaim 0.74 barrier.

AUD/USD wavers around 10-DMA near 0.7400

Currently, the AUD/USD pair trades 0.11% higher at 0.7396, on its way to retest Monday’s high at 0.7410. The Aussie remains better bid amid a mixed US dollar and poor risk sentiment as a somewhat upbeat Australian business conditions data underpin the AUD. The NAB Business Conditions for May came in at 10 versus 10 last (revised higher from 9), while confidence ticked lower to 3 versus 5 previous.

Moreover, the AUD/USD pair also finds support from the recent rally in base metals’ prices, particularly copper, which boosts the resourced-linked Aussie. While expectations of the Fed standing pat this week, continues to provide support to the Australian dollar at the expense of the buck.

Looking ahead, we have a busy week ahead for the Aussie, with the Aus inflation expectations and jobs report closely eyed. Besides, the FOMC decision remains the main risk event for most currencies this week.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7414/16 (50 & 100-DMA) above which gains could be extended to the next hurdle located at 0.7556 (daily R3). On the flip side, the immediate support located at 0.7376/72 (daily low/ 1h 200-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7303/00 (20-DMA & round figure).