AUD/USD makes a comeback, but not much of one, and 0.7550 remains untapped

• The Aussie springs upwards as the Dollar takes a break on softer inflation.
• Australian home Loans represents the only meaningful Asia session data for Friday.

The AUD/USD is walking back slightly from yesterday's high of 0.7540, but still hanging onto recent highs and trading close to 0.7530 just ahead of Australian Home Loans figures.

The Aussie managed to eke out some gains on Thursday against the Greenback, as the run-up to US inflation figures, and the eventual miss on the headline CPI, set the US Dollar back slightly. The Aussie-Dollar pair has priced in a new low at 0.7412, but the rebound has a long way to go before it can be called a recovery. US inflation came out at 2.1%, matching the previous reading and missing the forecast of 2.2%, but only slightly. With the Australian economy consistently pushing out far worse numbers, the Aussie's corrective stance is unlikely to last long.

Aussie bulls will get their first test early in Friday trading, when Australia drops their Home Loans figures at 01:30 GMT. The number is expected to show a disappointing -1.9%, an even deeper contraction than the previous reading of -0.2%.

AUD/USD levels to watch

FXStreet's Valeria Bednarik on the Aussie technical outlook heading into the week's end: "the pair remains strong as investors take profits out of dollar longs. The short-term picture is clearly bullish as the pair surpassed the 23.6% retracement of its latest decline and in the 4 hours chart, indicators head higher almost vertically, nearing overbought readings, as the price moves well above a now flat 20 SMA. The next Fibonacci resistance comes at 0.7565, the level to surpass to see a steeper Aussie recovery up to 0.7610."

Support levels: 0.7500 0.7470 0.7435

Resistance levels: 0.7565 0.7610 0.7650