AUD/USD: Recovery gains traction, takes-out 0.7400

The ongoing recovery in AUD/USD from four-day troughs gathered steam in the Asian hours, as bulls cheer renewed strength seen in copper prices, in wake of upbeat Chinese manufacturing PMI reports.

AUD/USD heads towards 10-DMA at 0.7421

Currently, the AUD/USD pair trades +0.38% higher at fresh session highs of 0.7411, having found strong support near 0.7380 region. The AUD bulls are seen back in action after taking a day off on Wednesday, as the greenback embarked upon a corrective slide against most of its major peers after the recent strength.

Moreover, a minor-recovery staged by copper and gold prices also provide extra legs to the AUD/USD rebound from yesterday’s low struck at 0.7368. While a set of better Chinese PMI reports outweighed poor Aus capex figures, having triggered the renewed upside in the major.

The spot will get influenced by the US weekly jobless claims and ISM manufacturing PMI data due later in the NA session. While the main risk event for the major remains the Aus retail sales and US NFP data due Friday.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7437 (5-DMA) above which gains could be extended to the next hurdle located 0.7460 (20-DMA) and 0.7505 (Nov 17 high). On the flip side, the immediate support located 0.7336 (daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7300 (zero figure) and below that at 0.7286 (daily S2).