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AUD/USD slides below mid-0.6400s, multi-day lows

  • AUD/USD remains depressed for the fourth consecutive session on Thursday.
  • The prevailing risk-off mood continues to weigh on the perceived riskier aussie.
  • Sliding US bond yields undermined the USD and might help limit deeper losses.

The AUD/USD pair traded with a negative bias for the fourth consecutive session on Thursday and dropped to fresh multi-day lows, below mid-0.6400s in the last hour.

The perceived riskier Australian dollar continues to be weighed down by the prevailing risk-off mood amid growing worries over the economic impact of the deadly coronavirus outbreak. Market worries intensified further after the World Health Organization declared the novel coronavirus a global pandemic.

Bulls refrain from placing any bets

Adding to this, US President Donald Trump suspended all travel from Europe for 30 days in order to fight the coronavirus. The global risk sentiment took a sharp knock in the wake of the latest development and turned out to be one of the key factors that kept exerting some downward pressure on the major.

The anti-risk flow led to some follow-through slide in the US Treasury bond yields. This coupled with fading optimism over Trump's proposed fiscal stimulus kept the US dollar bulls on the defensive through the Asian session and might eventually help limit deeper losses, at least for the time being.

It will now be interesting to see if the pair is able to attract any buying at lower levels or continues with its recent bearish trajectory amid absent relevant market moving economic releases. Meanwhile, the ECB-led volatility in the FX market might produce some meaningful trading opportunities.

Technical levels to watch

 

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