AUD/USD turns lower in sync with Oil, targets 0.7200

By FXStreet The recovery in the AUD/USD pair faltered at the mid-point of 0.72 handle, with the bears taking back control over the last hours amid retreat in the commodities’ prices, especially oil.

AUD/USD trades below all major DMAs

Currently, the AUD/USD pair trades modestly flat at 0.7230, now heading towards daily lows previously struck at 0.7221. The Aussie is seen paring gains as sentiment towards risky assets appears to come under pressure as oil stall its recovery mode and trades almost flat as of now.

However, the downside seems cushioned as the European stocks get renewed optimism and subdued trading seen in the greenback across the board. Next on immediate focus for the Aussie remains the US existing home sales data, which may provide fresh impetus on the US dollar, and eventually on the AUD/USD pair.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7261 (200-DMA/5-DMA) above which gains could be extended to the next hurdle located at 0.7291/0.7300 (10-DMA/ round number). On the flip side, the immediate support located at 0.7162/50 (Mar 2 Low/ Daily S2). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7105 (April 29 & Mar 1 Low).
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Source:: FX Street