AUD/USD recovery loses steam ahead of 0.7400

Risk-on remains the underlying theme in Asia on the final trading day of the week, providing further impetus to the overnight recovery in AUD/USD.

AUD/USD recedes below 0.74 handle

Currently, the AUD/USD pair trades +0.35% higher at 0.7388, easing-off session highs reached at 0.7404 last minutes. The Aussie remains strongly bid, although fails to resist above 0.74 handle and therefore, trims gains amid extension of risk-on trades in the Asian session, with the Asian stocks rebounding alongside oil prices.

The US dollar edges lower this session against its major rivals as markets assess a mixed series of US economic data released last US session. Hence, the AUD/USD pair benefits from broad based US dollar retreat, which aids the recovery in the Aussie from ahead of 0.73 handle.

Nothing of note for the major until the NA session, when the US releases a set of housing data, including the housing starts and building permits. In the meantime, markets will continue to track the sentiment surrounding oil and stocks.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7439/46 (June 16 & 15 high) above which gains could be extended to the next hurdle located at 0.7500 (round number). On the flip side, the immediate support located at 0.7350 (psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7331 (20-DMA).