AUD/USD keeps the red near multi-month lows, around 0.6700 mark ahead of US data
- AUD/USD remains under some heavy selling pressure for the third straight day.
- Extremely oversold conditions helped limit losses amid a subdued USD demand.
- Investors eye second-tier US economic data for some short-term trading impetus.
The AUD/USD pair maintained its offered tone through the mid-European session, albeit has managed to rebound around 15-20 from near four-month lows touched earlier this Friday
Having failed to find any respite from stable Chinese PMI prints, the pair witnessed some fresh selling on the last trading day of the week and extended its recent bearish trajectory for the third consecutive session on Friday.
Aussie weighed down by risk-off mood
The downfall, also marking the fifth day of a negative move in the previous six, took along some short-term trading stops near the 0.6700 round-figure mark and dragged the pair back closer to over a decade low set last October.
A weaker tone surrounding equity markets – reflective of the risk-off mood was seen driving flows away from perceived riskier currencies, including the Australian dollar, though extremely oversold conditions helped limit further losses.
Meanwhile, a subdued US dollar price action – despite a modest rebound in the US Treasury bond yields – did little to impress bullish traders or stall the pair's ongoing downward trajectory to the lowest level since October 2.
Moving ahead, market participants now look forward to the US economic docket – featuring the release of Personal Income/Spending data, Core PCE Price Index and Chicago PMI – to grab some short-term trading opportunities.
Technical levels to watch