The AUD/USD pair is seen gradually retreating from key support located near 0.7040 region, although lacks follow through as falling Asian equities continue to hurt market sentiment. AUD/USD ignores oil price rebound Currently, the AUD/USD pair trades -0.22% lower at 0.7056, trying hard to recover from session lows at 0.7038 struck at Tokyo open. The selling pressure seen around the AUD/USD pair can be attributed to the deteriorating risk conditions as the sharp losses in the Japanese and Australian stocks offset the optimism seen out of the solid oil price recovery. Oil prices on the both sides of Atlantic are seen reversing yesterday’s 6% slide and now rally over 2%. Moreover, the Aussie also ignored upbeat domestic home sales data and kept the cautious tone intact ahead of Fed Yellen’s testimony due later today. While RBA Governor Stevens’ speech will be also closely heard as he continues to remain optimistic on the Aus economic prospects. New home sales climbed 6.0% m/m in December, after booking a 2.7% drop in November, marking the strongest monthly increase since November 2013. AUD/USD Levels to watch The pair finds the immediate resistance at 0.7069/79 (5-DMA/ daily high) above which gains could be extended to the next hurdle located at 0.7094/96 (10 & 50-DMA). On the flip side, the immediate support located at 0.7000/ 0.6993 (round number/ daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6944 (Jan 25 Low). For more information, read our latest forex news.