AUD/USD: Recovery falters ahead of 0.7550

The AUD/USD pair stalled its minor-recovery just above 0.7550 levels and reverted towards daily lows, mainly dragged lower by renewed weakness in oil prices.

AUD/USD heavy, eyes 0.7500

Currently, the AUD/USD pair drops -0.42% to 0.7540, retesting session lows struck at 0.7434 in the last hour. The Aussie remains deep in the red on the back of increased demand for the greenback across the board, following the release of above estimates US NFP data. Meanwhile, the USD index rallies +0.48% to fresh ten-day highs of 96.77 levels.

Moreover, the Australian dollar remains under pressure against its US counterpart amid recent headlines that crossed the wires earlier on the day, that cite, ‘Moody's ratings over an Australian coalition government are negative.’ While last week’s downward revision to Aus sovereign credit outlook from stable to negative, also keeps the bearish pressure intact on the AUD.

Further, fresh selling in the oil prices also collaborates to the downbeat sentiment surrounding the resource-linked Aussie. Looking ahead, markets also remain cautious ahead of the Aus employment data and a slew of Chinese economic release due later this week, with Sunday’s matching expectations China’s CPI doing little to offer some support to the major.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7565 (daily R1) above which gains could be extended to the next hurdle located at 0.7600 (round figure). On the flip side, the immediate support located at 0.7508 (10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7479/74 (20 & 100-DMA).