AUD/USD bounces back above 0.6350, risk-on underpins

• Broad US dollar rebound, weaker oil and gold drag Aussie lower.
• China’s Q1 GDP slump remains a weigh on the spot.
• Upbeat risk tone lends support to the AUD bulls.

AUD/USD is making a comeback above the midpoint of the 0.63 handle in Europe, having tripped to near the 0.6320 region after the US dollar attempted a bounce across the board.

Over the last hour, the greenback recovered most losses vs. its main competitors, with the US dollar index now trading modestly flat just shy of the 100 mark.

The spot also saw some fresh selling, as both oil and gold prices dropped amid firmer risk tones. The market sentiment improved on hopes of a coronavirus cure after Gilead’s clinical tests of the Remdisivir drug showed promising results in treating the infection.

Meanwhile, the sharp contraction seen in the Chinese economy in the first quarter of this year and mixed Retail Sales and Industrial Production remains a drag on the aussie dollar, which could keep the further upside attempt in check.

However, the pair could revisit the daily highs of 0.6383 should the dollar cave into the upbeat market mood once again, as the risk sentiment remains the key driver amid lack of relevant macro news.

Also, the focus will be on the stage-1 of the re-opening plan for the US economy that starts from today.

AUD/USD technical levels to watch