AUD/USD attempting a rebound back to 200-DMA

After staging a recovery from over two-month low levels touched on Thursday, the AUD/USD pair maintained its bid tone during Asian trading session on Friday to currently trade just shy of the mid-point 0.7200-0.7300.

After the RBA announced a surprise interest rate-cut on May 3, the pair has declined sharply despite of the fact that the minutes of the early May meeting clearly pointed to the central bank's wait and watch approach before deciding to ease further.

Moreover, recent hawkish comments from various Fed members, spiced-up by increasing prospects of a June Fed rate-hike, has been acting as a key overhang for the AUD/USD bulls.

From technical perspective, the pair this week decisively broke through the very important 200-day SMA support and remains vulnerable to further downside in the near-term.

Technical levels to watch

On the immediate upside, 200-day SMA near 0.7260-65 region now seems to act as immediate resistance. Although a move back above 200-day SMA might get extended, but is likely to confront strong offers near 0.7300 handle (0.7300-0.7315 zone) and hence, only a decisive strength above this supply zone would increase the possibilities of a further near-term recovery for the pair.

On the flip side, 0.7210-0.7200 round figure mark might continue to extend immediate support, below which the pair remains vulnerable to extend its decline towards 0.7100 round figure mark support.