You can check this,
http://www.melonjs.org/demos/whack-a-mole/
and here is a couple of key stuff to look at :
http://www.melonjs.org/docs/symbols/me.input.html#touches
http://www.melonjs.org/docs/symbols/me.input.html#triggerKeyEvent
As well be sure to use the last 0.9.4 version, as a couple of small issues have been corrected on the mouse/touch support.
Why did you however used HUD items, and not something like GUI Object?
The advantage of the later is that as it extends Sprite and so Rect, you don't have to create/specify a new rect and can directly use the object itself as reference.
Think as well about passing true for the 4th parameter (to indicate it's a floating object), and about adding the onDestroyEvent function to actually remove the mouse/touch listener when the object is destroyed.
Cheers,
Olivier.