AUD/USD under pressure on weaker commodities, 0.7200 eyed?

The AUD/USD pair failed near Thursday’s high and turned lower from there in the Asian session, now consolidating the previous rally below 10-DMA at 0.7228.

AUD/USD targets 0.7200

Currently, the AUD/USD pair trades -0.07% lower at 0.7220, hovering close to session lows struck at 0.7215 in the last hour. The Aussie edged slightly lower this Friday, correcting heavy gains booked in the previous two sessions amid risk-on rally seen in the global equities backed by the oil-price rally.

The AUD/USD pair remains under pressure this session as the lower commodities’ prices, especially gold and oil weighs on the sentiment surrounding the resource-linked AUD. Moreover, resurgence of broad based US dollar strength, following the recent corrective slide, also restricts any recovery attempt staged by the major.

Looking ahead, markets now eagerly await the US dataflow, including the GDP figures, for fresh insights on the strength of the US economic recovery. While Fed Yellen’s speech in Massachusetts will be also closely heard.

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 0.7285/0.7300 (20-DMA/ round number). On the flip side, the immediate support located at 0.7207/05 (1h 50 & 100-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7178/65 (Daily S1/ May 26 Low).