AUD/USD bounces-off lows near 0.7400, risk-on back in vogue?

Fresh bids emerged just ahead of 0.74 handle, allowing a tepid-bounce in AUD/USD back towards 0.7430 region amid risk reset.

AUD/USD around 5-DMA at 0.7423

The major broke the overnight consolidative range to the upside in Asia, as sentiment towards the US dollar worsened amid a turnaround in risk conditions. Appetite for risk assets such as the Emerging Market currencies, US yields and oil returned to markets, as attention now turns towards Comey’s testimony due next week. Meanwhile, Comey’s video induced broad based USD rebound halted, which also aided the renewed upside in the spot.

US Dollar jumps suddenly following Comey's video suggesting that investigation obstructions "never happened"

Further, markets fail to buy into the unrealistic proposed Trump budget due to be released next week, which further collaborated to the USD selling seen so far this session.

AUD/USD Levels to watch   

At 0.7424, the immediate resistance is aligned at 0.7457 (classic R1), above which gains could be extended to the next hurdle located 0.7495 (classic R2/ Fib R3) and 0.7513 (50-DMA). On the flip side, the pair finds the immediate support at 0.7399 (10-DMA/ May 9 high) Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7367 (classic S2/ Fib S3) and below that 0.7350 (psychological levels).