AUD/USD trying to scramble back to the 0.75 handle as the Dollar takes a breather

• Aussie bounces as the Dollar gives back some of its recent gains.
• Little data on the calendar for the AUD, but Chinese inflation could produce some movement.

The AUD/USD is looking for some lift in Thursday's early Tokyo session, trading over 0.7450 after managing a rebound off of 11-month lows yesterday.

The Aussie has a free calendar for today, but Chinese CPI figures at 01:30 GMT could provide some knock-on movement for the AUD/USD. Economic data for Australia has been a consistently disappointing affair, and as the interest rate differential between the AUD and the USD continues to widen, Aussie traders can expect to continue falling down the charts.

AUDUSD: The short term momentum indicators are looking a little more positive

Despite interest rate struggles for the Reserve Bank of Australia (RBA), the pair has temporarily turned bullish, and as Jim Langlands noted, "the short term momentum indicators are looking a little more positive today although the longer term charts still look heavy, so selling into any near term strength still seems to be the way to go."

AUD/USD analysis: trying to recover, Chinese inflation in the way

AUD/USD levels to watch

FXStreet's Valeria Bednarik, with the breakdown on the Aussie's stance heading into the Thursday window: "there were no major macroeconomic figures released in Asia, and the local calendar will have nothing to offer this Thursday, although China will release its April inflation figures, seen down 0.1% monthly basis, better than the previous 1.1% slump. Yearly inflation is seen at 1.9%, retreating from previous 2.1%. As usual, the worse the outcome the more chances of the Aussie losing ground, at least short-term. Technically, the pair has recovered just modestly, and as it happens with other major pairs, seems a mere correction in the middle of the dollar's strong bullish trend. Technical readings in the 4 hours chart indicate that the risk remains toward the downside, as the pair keeps developing below a bearish 20 SMA, while technical indicators lost upward strength within negative territory after correcting oversold conditions."

Support levels: 0.7435 0.7400 0.7365

Resistance levels: 0.7475 0.7510 0.7550