AUD/USD struggling to build on recovery move further beyond 0.74 handle

The AUD/USD pair continued gaining some traction for the third consecutive day and jumped to weekly highs, albeit has struggled to build on the momentum further beyond the 0.7400 handle.

Spot extended its recovery from four month lows touched early this week and is benefiting from a minor recovery in copper prices, which was seen lending some support to the commodity-linked currencies, including the Australian Dollar. Moreover, a subdued greenback price-action, led by retracing US treasury bond yields, further collaborated to the bid tone surrounding the major.

It, however, remains to be seen if the pair is able to build on to the ongoing recovery move or once again runs through fresh supply at higher levels amid growing prospects for an eventual Fed rate-hike action in June. 

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Later during the NA session, traders will confront the release of US macro data - inflation figures, monthly retail sales and Prelim UoM Consumer Sentiment, which if surprises positively should extend support to bond yields and keep a lid on any swift recovery for higher-yielding currencies - like the Aussie.

Technical levels to watch

Momentum above the 0.7400 handle could get extended towards 0.7425 resistance, above which the pair is likely to head towards 0.7460 horizontal resistance before aiming towards reclaiming the key 0.75 psychological mark.

On the flip side, retracement back below 0.7370-65 immediate support would negate possibilities of any further recovery and turn the pair vulnerable to head back towards testing multi-month lows support near 0.7330 region.