AUD/USD clings to gains above 0.74 mark

The AUD/USD pair gained some fresh traction and traded with positive bias for the fourth consecutive session, albeit has retreated few pips from session tops.

Currently trading around 0.7420 region, the pair held steady above the 0.7400 handle after the minutes from the Reserve Bank of Australia’s last monetary policy meeting did not hint towards any change in the central bank's monetary policy stance for the foreseeable future. The minutes were consistent with previous RBA statements and provided little surprise for the financial markets to react. 

   •  RBA Minutes offered little new details for markets - TDS

Meanwhile, persistent US Dollar selling pressure, in wake of the recent downbeat incoming US economic data and softer tone surrounding the US treasury bond yields, provided a minor boost to the major. 

The up-move, however, lacked conviction and the pair held below Monday's swing high near mid-0.7400s amid mixed performance in the commodity space, which derives demand for commodity-linked currencies, including the Aussie. 

Moving ahead, traders now look forward to the US economic docket, featuring the release of housing starts, building permits, industrial production and capacity utilization data, for some fresh impetus.

Technical levels to watch

From current levels, the 0.7400 handle might continue to act as immediate support, which if broken could accelerate the slide towards 0.7370 intermediate support en-route 0.7445-40 area. On the upside, 0.7450 level remains immediate strong hurdle to conquer, above which a fresh bout of short-covering has the potential to lift the pair back towards the key 0.75 psychological mark.