AUD/USD recovery stalls near 0.7230, back at 0.7200

The selling pressure behind the AUD appears to gather pace once again, driving AUD/USD back near daily lows as risk-off remains in full swings amid lower oil and stocks.

AUD/USD hovers near 11-week lows

Currently, the AUD/USD pair trades -0.40% lower at 0.7200, meeting fresh supply near 0.7230 region. The Aussie halted its recovery mode and fell further into losses as sentiment in Europe deteriorated sharply after oil prices extended losses and crushed investors’ confidence, weighing heavily on the higher-yielding assets such as equities, AUD etc.

Moreover, the European traders negatively react to the disappointing Aus jobs data, which has increased odds of further rate cut by the RBA in the upcoming months. The unemployment rate held steady at 5.7% in March, while 10,800 jobs were added to the economy last month, below expectations of a 12,000 net increase. The labor force participation rate unexpectedly fell from 64.9% in March to 64.8% last month, the lowest in almost a year.

Meanwhile, the Aussie will track broader market sentiment ahead of the US datasets and Fed speeches, which may provide fresh impetus to the major.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7262 (200-DMA) above which gains could be extended to the next hurdle located at 0.7300 (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).