AUD/USD bounces back to 0.7450 as the USD rebound fizzles

• AUD/USD attempts a bounce amid a better market mood.
• Risk flows weigh on the US dollar’s haven demand, aiding aussie’s rebound.
• Hawkish RBA’s outlook also remains in play ahead of Powell’s speech.

AUD/USD has stalled its Asian retreat near the 0.7420 region, now looking to recapture 0.7450 ahead of the European open.

The renewed upside in the aussie is largely due to the fresh selling seen in the US dollar, as the buck stalls its rebound vs. its major peers amid an upbeat market mood. The greenback fails to sustain the rebound despite the recovery in the US Treasury yields across the curve.

Investors turn cautious ahead of the speeches by the key global central bankers, with the one from Fed Chair Jerome Powell eagerly awaited to confirm the recently increased hawkishness.  

Meanwhile, the hawkish shift in the forward guidance by the Reserve Bank of Australia (RBA), as revealed in the central bank’s April meeting minutes, also keeps the sentiment around the AUD buoyed.

Besides, Powell’s appearance, “market participants now look forward to the US economic docket, featuring the release of the Philly Fed Manufacturing Index and the usual Weekly Initial Jobless Claims later,” FXStreet’s Analyst Haresh Menghani notes.

AUD/USD: Technical levels to consider