AUD/USD loses grasp of 0.74 as the Greenback makes a return

• The Aussie is retreating from recent highs once again as the Greenback comes back off the bench.
• Rising Treasury yields are bolstering the US Dollar across the board, seeing gains across the G10 market.

The AUD/USD is back into 0.7375 after losing grasp of the 0.7400 key level as the US Dollar gained across the broader FX markets, and the Aussie is back to playing on the defensive side after slipping from Thursday's highs of 0.7460 in one-sided trading.

The US Dollar found its stride once more across the G10 currency space, sending the Aussie back into retreat as traders return to scooping up the Greenback. The US Treasury yield curve continues to flatten out, and 10-year Treasury notes hit 2.967% on Thursday, propping up the US Dollar ahead of Friday's reading of key US economic data, with the preliminary annualized GDP for Q2 2018 dropping at 12:30 GMT, which is expected to clock in at an eye-watering 4.1%, compared to the previous reading of 2.0%, which was a healthy reading in its own right.

On the Aussie side of the economic calendar, Friday is decidedly thin. Q2 Producer Price Index figures are due at 01:30 GMT, and the q/q headliner is expected to decline from 0.5% to 0.4%, but the low-tier data is unlikely to drive much action as broader markets focus on USD demand.

AUD/USD Levels to watch

The Aussie remains trapped in a rough range on higher timeframes, but current intraday action is leaning into the bearish camp, and as FXStreet's own Valeria Bednarik noted, "the short-term picture is bearish, although still longer-term range bound, as in the 4 hours chart, the pair is back below its moving averages, while technical indicators heading sharply lower in negative territory. The pair could extend its decline down to the 0.7300 region on a break below 0.7370, where buyers have been defending the downside for over a month, which means large stops could be placed right below the figure and if triggered, result in a stronger downward move."

Support levels: 0.7370 0.7330 0.7300     

Resistance levels: 0.7445 0.7490 0.7520