AUD/USD recovers from 1-month lows

• AUD/USD recovers from lows but remains on the defensive
• Risk sentiment remains fragile, weighing on the Aussie

The Australian dollar managed reverse daily losses against the greenback after hitting fresh 1-month lows, weighed by the risk-off environment.

However, after bottoming out at 0.7834, lowest since Jan 10, AUD/USD moved slightly higher and turned positive for the day. At time of writing, the pair is trading at 0.7883, 0.10% above its opening price.

In the absence of major data releases, AUD/USD remains driven by the market sentiment, with risky assets on the defensive and stocks leading losses around the globe.

AUD/USD levels to watch

In terms of technical levels, next supports are seen at 0.7835 (1-month low), 0.7800 (psychological level/50-day SMA) and 0.7778 (100-day SMA). On the flip side, resistances could be found at 0.7900 (50-hour SMA/psychological level), 0.7953 (Feb 5 high) and 0.7975 (21-day SMA).