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AUD/USD flirting with multi-year lows, risks breaking below 0.6100 mark

  • AUD/USD failed to capitalize on its early attempted recovery to 0.6300 round-figure mark.
  • The coronavirus-led selloff in the equity markets weighed on the perceived riskier aussie.
  • The downfall seemed rather unaffected by tumbling US bond yields and weaker greenback.

The AUD/USD pair dropped to lower end of its daily trading range, or 11-year lows, with bears now awaiting a sustained break below the 0.6100 mark.

The pair struggled to build on its Asian session recovery move led by the Fed's emergency decision to slash interest rates to zero and faced rejection near the 0.6300 round-figure mark amid the prevalent risk-off environment.

Despite coordinated efforts by major central banks, mounting fears over the negative impact of the coronavirus pandemic continued weighing on investors' sentiment and the same was evident from a sea of red across the global equity markets.

The risk-off mood eventually turned out to be one of the key factors that exerted some fresh downward pressure on the perceived riskier Australian dollar. The intraday slide seemed rather unaffected by some heavy selling around the US dollar.

A fresh leg of a steep decline in the US Treasury bond yields kept the USD bulls on the defensive through the early North-American session, albeit failed to impress bullish traders or provide any meaningful impetus to the major.

It will now be interesting to see if the pair is able to find any support at lower levels or confirms a fresh bearish break below the 0.6100 mark, setting the stage for an extension of the recent bearish trajectory witnessed over the past one week or so.

Technical levels to watch

 

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