FXStreet (Mumbai) - The AUD/USD pair is moving in lock-step with the oil prices, and now reverses the spike to daily highs to trades near 0.7050 region. AUD/USD rejected at 5-DMA at 0.7069 Currently, the AUD/USD pair trades 0.10% higher at 0.7046, retracing swiftly from fresh session highs posted at 0.7068 last hours. Having bottom at 0.7003 in early Asia, the Aussie pair extends its recovery mode into the European session, with the bulls bolstered by the rebound seen in oil prices. However, the recovery in both oil and the Aussie lacked follow-through and hence the major moved-off highs. The AUD/USD pair came under heavy selling pressure earlier in Asia after the country’s trade gap grew from $2.73 billion in November to $3.54 billion in December, coming in much worse than the market forecast of a $2.45 billion deficit. Moreover, the overnight slump in the oil prices had triggered risk-aversion across the financial markets, which also added to the weakness in the Aussie. Meanwhile, the US ADP, ISM services PMI and the EIA weekly inventories reports are likely to remain the main risk events in the session ahead, and may have major impact on the AUD/USD pair. AUD/USD Levels to watch The pair finds the immediate resistance at 0.7073/82 (1h 100-SMA/ Jan 27 High) above which gains could be extended to the next hurdle located at 0.7096/ 0.7100 (daily R1/ round number). On the flip side, the immediate support located at 0.7003/00 (daily low/ round number). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6987 (20-DMA). For more information, read our latest forex news.