AUD/USD ignores better Aus data, targets 0.7400 amid risk-off

The AUD/USD pair met aggressive selling pressure over the last and dropped to test the key support near 0.7420, before finding some support near the last on the release of better Australian building approvals data.

AUD/USD re-takes 0.7440?

The spot witnessed a momentary relief following the release of better-than expected Australian building consents data, but the bears immediately took over control, keeping the rate closer towards the daily lows of 0.7417.

Australia Building Permits (MoM) came in at 4.4%, above expectations (3%) in April

Moreover, persisting risk-off trades on the back of re-emergence of the Greek default drama and UK election jitters , continue to weigh on the higher-yielding currency AUD, while tumbling copper prices also hurt the sentiment around the commodity currency. Copper futures on Comex drop -0.43% to $ 2.558/ pound.

Furthermore, the Aussie suffers from rising demand for the US dollar across the board, mainly driven by steep losses in the Euro and GBP. With the Aus data out of the way, focus remains on the risk trends and upcoming US dataflow for fresh impetus on the pair.

AUD/USD Levels to watch   

At 0.7428, the immediate support is located at 0.7417 (daily low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7400 (round figure) and below that 0.7385 (May 17 low). On the flip side, the pair finds the immediate resistance at 0.7442/58 (5 & 10-DMA) above which gains could be extended to the next hurdle located 0.7520/23 (3-week tops/ 200-DMA) and 0.7550 (psychological levels).