AUD/USD recovery finds resistance around 0.7140 and retreats

• The pair failed to benefit from USD slide versus the yen and European currencies.  
• Key data ahead: Australian employment report.

The recovery of the AUD/USD pair found resistance at the 0.7140 area and pulled back. The pair remains steady, hovering around 0.7130. During the US session bottomed at 0.7122 while it failed to test again 0.7140.

The US Dollar spiked lower against the yen and major European currencies, but AUD/USD held steady, unable to benefit. A retreat from the top in US yields and also in equity prices also took place during the last hour.  

Regarding data, the US Richmond Fed Manufacturing Index improved from -8 to -2 in January. In Australia, on Thursday at 00:30 GMT, the employment report is due. An increase of 16.5K in employment is expected.  

AUD/USD Key levels to watch  

The Aussie remains supported by a weak US dollar but still limited. A break above 0.7140 would open the doors to further gains for the pair. The next resistance is seen at 0.7160 (Jan 22 high). On the flip side, under 0.7120 a test of yesterday’s low at 0.7114 seems likely; below the 0.7100 area would be exposed.