AUD/USD: taking on the 0.75 handle but capped at 0.7542

Currently, AUD/USD is trading at 0.7531, up 0.58% on the day, having posted a daily high at 0.7542 and low at 0.7471.

AUD/USD staged a recovery at the end of last month's business from 0.7439 27th April lows. This trend continued at the start of May with the Aussie picking up the pace on to the 0.75 handle. Markets were thin overnight and there has not been an offer until aforementioned highs today in the US session; the kiwi has run with the Aussie also. US data has been soft of late, witht he recent miss in GDP, PCE and the following: US: Slowest improvement in manufacturing business conditions since September 2016 - Markit

• Gold slips to fresh 3-week lows below $1260

The US yields picking up may have contributed to the bullish trend capping, back above that psychological 2.3% mark in the 10 years. China's data was a miss, with the official PMIs showing that China's manufacturing grew by 51.2 in April, against previous 51.8, while the non-manufacturing sector a miss with the PMI printing 54.0 from previous 55.1. The week ahead will likely see both the RBA and Fed on hold while we await the outcome of the nonfarm payrolls at the end of the week. 

AUD/USD levels

Analysts at Commerzbank explained that AUD/USD’s near-term outlook is bearish. "AUD/USD’s fall below its early April low at .7472 is bearish with the 61.8% Fibonacci retracement at 0.7385 being in focus. The April low at .7440 is the breakdown point to the 2016-2017 uptrend at 0.7279," the analysts explained, adding that the longer-term outlook is negative, "the repeated failure in the 0.7750/.7836 region turns the market from the topside of a converging range and leaves it heading to the base of the range offered by the 2016-2017 support line at 0.7286."