AUD/USD stages solid comeback, regains 0.7200

The Australian dollar stalled its overnight decline against the American dollar in the Asian session, with AUD/USD staging a solid rebound to clinch 0.72 handle.

AUD/USD receives double impetus

Currently, the AUD/USD pair rises +0.25% to 0.7205, having found solid support near 5-DMA located at 0.7187. The AUD/USD pair extended its recovery seven-month troughs and now conquered 0.72 barrier once again, as the resource-linked AUD was bolstered by a similar rebound seen in gold prices.

More so, a rally in the Australian stocks also boosts the risk-on flows in the higher-yielding Aussie. Additionally, a sharp retreat in the greenback against its six major peers further aided the recovery in the AUD/USD pair.

Markets look past upbeat US datasets published last US session, as focus now shifts to a fresh release in the pending home sales from the US docket later today.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7219 (10-DMA) above which gains could be extended to the next hurdle located 0.7235 (daily R3) and 0.7260 (Dec 22 high). On the flip side, the immediate support located 0.7187 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7154/52 (multi-month lows) and below that at 0.7105 (March 2016 low).