The AUD/USD pair continued scaling higher through the first half of the European session and shot to over two-week tops, around the 0.7775 region in the last hour. The pair built on the previous day's post-US CPI bounce from the 0.7720-15 region, or weekly lows and gained follow-through traction for the second straight session on Friday. The US dollar remained on the defensive amid expectations that the Fed will retain its ultra-lose monetary policy for a longer period. This, in turn, was seen as a key factor that provided a modest lift to the AUD/USD pair.

The latest leg up pushed the AUD/USD pair beyond the 0.7755-65 horizontal resistance and might have already set the stage for additional gains. That said, the lack of any strong follow-through buying warrants some caution for bullish traders. Nevertheless, the stage seems set for a move towards reclaiming the 0.7800 mark en-route the next hurdle near the 0.7815-20 region. Market participants now look forward to the release of the Preliminary Michigan US Consumer Sentiment index for some impetus later during the early North American session. Apart from this, the US bond yields will influence the USD. Traders might further take cues from the broader market risk sentiment to grab some short-term opportunities around the perceived riskier aussie.