FXStreet (Mumbai) - The AUD/USD pair erased losses and jumped back on the bids above 0.70 handle, as a turnaround in the risk conditions over the last hours provided fresh impetus to the Aussie. AUD/USD revisits daily highs Currently, the AUD/USD pair trades modestly flat at 0.7007, bouncing-off a brief dip to session lows at hourly 50-SMA of 0.6981. The AUD/USD pair broke its overnight consolidation phase and broke to the downside in recent dealings, before finding fresh bids at hourly 50-SMA. The AUD bulls took back control and now flirts with daily highs on 0.70 handle, as the risk sentiment improves tracking the extended rally in the Asian stocks. Japan’s Nikkei jumps 1.39%, while the ASX 200 rallies +1.60%. The upbeat tone around the Aussie can be also attributed to the on-going recovery in oil prices from twelve-year troughs, with markets starting to believe that the black gold may have found a floor after the prices rebounded nearly 9% last week. However, the gains remain capped as investors digest the week economic data from Australia released earlier on the day. The NAB Business Confidence fell back to 3 in December after hitting 5 in November; the Business Conditions Index also fell to 7 in December after it rising to 10 in November. Later today, there is nothing relevant in terms of economic news for the Aussie, and hence, focus remains on the FOMC statement and Aus CPI report due later this week. AUD/USD Levels to watch' The pair heads higher and finds the immediate resistance at 0.7013/15 (1h 20-SMA/ daily R2) 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 0.6981 (Daily Low/ 1h 50-SMA) Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6940/38 (10-DMA/1h 200-SMA). For more information, read our latest forex news.