AUD/USD attempts to build on overnight rebound from 11-month lows

   •  Chinese PPI print/subdued USD demand supports a follow-through uptick.
   •  Retracing US bond yields provide an additional boost and remain supportive.
   •  Still seems lacking strong conviction ahead of the latest US CPI figures.

The AUD/USD pair was seen attempting to build on overnight rebound from fresh 11-month lows and traded with a mild positive bias just above mid-0.7400s.

The pair did get some lift during the early Asian session on Wednesday following the release of Chinese Producer Price Index. In fact, the latest PPI print came in to show that factory prices increased 3.4% y-o-y in April and provided a minor boost to the China-proxy Australian Dollar. 

Meanwhile, the recent US Dollar relentless rally took some breather for the second straight day on Thursday, which coupled with a modest retracement in the US Treasury bond yields extended some additional support to higher-yielding currencies - like the Aussie.

Despite a combination of supportive factors, the pair lacked any strong bullish conviction and remained below the key 0.75 psychological mark as investors now look forward to the latest US consumer inflation figures, due later during the early NA session, for fresh directional impetus.

In the meantime, the pair seems more likely to continue with its range-bounce price action and remains at the mercy of USD/US bond yield dynamics.

Technical levels to watch

Any meaningful up-move is likely to confront immediate resistance at the 0.75 handle, above which the pair is likely to aim towards challenging the 0.7540-45 supply zone. On the flip side, mid-0.7400s now seems to protect the immediate downside, which if broken might now turn the pair vulnerable to extend its bearish trajectory towards testing its next major support near the 0.7410-0.7400 region.