AUD/USD bulls eyeing a move further beyond 0.74 handle post-US CPI

   •  USD sees some selling after softer inflation report.
   •  Bullish commodities/risk-on mood remains supportive.

The AUD/USD pair extended its steady climb through the early European session and is now looking to build on the momentum beyond the 0.7400 handle. 

The US Dollar witnessed some selling after today's softer inflation figures, coming in to show that headline CPI rose by 0.1% m/m as against 0.2% anticipated and turned out to be one of the key factors behind the pair's latest leg of a sharp spike over the past hour or so.

This coupled with a strong rebound in copper prices, which tends to underpin demand for commodity-linked currencies - like the Aussie, coupled with a modest recovery in investors' risk appetite remained supportive of the pair's goodish rebound on Thursday.

The up-move, however, lacked any strong follow-through beyond the 0.7400 handle amid growing fears of a full-blown US-China trade war, which might continue to keep a lid on any meaningful up-move for the China-proxy Australian Dollar.

With the key US economic data out of the way, the USD price dynamics might continue to act as a key determinant of the pair's momentum ahead of Friday's release of Chinese trade balance data.

Technical levels to watch

On a sustained momentum back above the 0.7400 handle, the pair is likely to aim towards testing the 0.7440 intermediate resistance before eventually darting towards the 0.7480-85 supply zone.

Alternatively, weakness below the 0.7380-70 region might negate prospects for any further up-move and turn the pair vulnerable to slide back towards challenging YTD lows support near the 0.7315-10 area.

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