The overnight recovery in AUD/USD lost legs near 0.7130 region and the prices drifted lower, tracking sharp declines in the Asian equities as markets digest RBA Stevens comments. AUD/USD back below 0.71 handle Currently, the AUD/USD pair drops –0.13% at 0.7098, hovering close to fresh session lows posted at 0.7093 in the last hour. The Aussie extended the overnight recovery and went on to print session highs at 0.7128 as RBA Governor Stevens began his testimony before the House Representatives' Standing Committee on Economics, in Sydney. However, the Stevens’ backed knee-jerk spike soon fizzled and the prices fell back in the red as risk-aversion seeped back into the markets, with the Asian equities joining the global rout and entered the bear market territory. Australia’s ASX 200 now declines -0.96% and hovers near multi-month lows of 4,760 points. Markets shrugged off strong rebound in oil prices as the focus now remains on the global equities, with the banking sector in the spotlight amid most central banks’ preference for negative interest rates. With RBA’s Stevens testimony out of the way, the next significant event on tap for the Aussie, is the US retail sales data due lined up for release in the NY session. AUD/USD Levels to watch The pair finds the immediate resistance at 0.7128/41 (daily high/ 100-DMA) above which gains could be extended to the next hurdle located at 0.7189/0.7200 (Feb 3 High/ round number). On the flip side, the immediate support located at 0.7078/69 (1h 100-SMA/ 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7019 (daily S1). For more information, read our latest forex news.