AUD/USD heavy, fails to resist above 0.7800 as Oil tumbles

The AUD/USD pair extends its retreat from ten-month tops in the mid-Asian trades, having peaked at 0.7826 levels in the last US session.

AUD/USD drops to lows near 0.7780

Currently, the AUD/USD pair now drops -0.32% to 0.7788, keeping range near fresh session lows struck at 0.7783 some minutes ago. The Aussie ended a four-day rally and dropped sharply this session as sentiment soured across the financial markets as oil turned back in the negative territory after Kuwait labour strike ended.

Moreover, the recent speech by RBA Governor Stevens also continues to weigh on the investors’ mind and hence, reduces the demand for AUD against its American rival. Further, markets look to book profits on their AUD kings after the recent strength, as focus now shifts towards the US existing home sales and US crude inventories data due later today for further incentives on the Aussie.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7800 (round number) above which gains could be extended to the next hurdle located at 07826/53 (Apr 19 High/ June 2015 high). On the flip side, the immediate support located at 0.7741/25 (5-DMA/ 1h 100-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7694/90 (daily pivot/ 10-DMA).