FXStreet (Mumbai) - The AUD/USD pair reversed a downward spike to 0.6920 and jumped back on the bids, tracking the recovery in oil prices amid a calm European session. AUD/USD sees a 50-pips recovery Currently, the AUD/USD pair trades 0.32% higher at fresh session highs of 0.6977, where the 20-DMA intersects. The Aussie regained significant strength over the past couple of hours and turned positive once again as the recovery in oil prices appears the only catalyst behind the rebound. Both crude benchmarks recovered losses and jumped back in the green, with the US oil extending beyond $ 30 barrier. Moreover, the sentiment on the equities also improves and boosts the appetite for risk, which benefits the higher-yielding currency AUD. The European stocks are seen paring considerable losses and track the oil price movement closely. Markets now await the US economic releases for further momentum on the pair, ahead of tomorrow’s crucial Aus CPI report and the Fed decision. Markets are expecting CPI to tick lower to 0.3% from last quarter’s figure of 0.5%, and remains poised to book the third consecutive quarterly decline. AUD/USD Levels to watch The pair heads higher and finds the immediate resistance at 0.6986/ 0.7002 (1h 50-SMA/ daily R21) above which gains could be extended to the next hurdle located at 0.7050 (Jan 13 High/ psychological levels). On the flip side, the immediate support located at 0.6934/31 (1h 200-SMA/ 10-DMA) Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6907/00 (Jan 7 Low/ round number). For more information, read our latest forex news.