AUD/USD slides to multi-day lows, around mid-0.6000s amid broad-based USD strength
- AUD/USD remained depressed for the second straight day and retreated further from two-week tops.
- Concerns over the coronavirus crisis boosted the USD’s safe-haven status and exerted some pressure.
- Stronger-than-expected US ADP report remained supportive of the strong bid tone around the buck.
The AUD/USD pair maintained its offered tone through the early North-American session and refreshed daily lows, around mid-0.6000s in the last hour.
The pair extended the previous session's intraday pullback from two-week tops – levels just above the 0.6200 round-figure mark – witnessed some selling for the second straight session on Tuesday amid resurgent US dollar demand.
As investors braced for an imminent global recession, a fresh wave of the global risk-aversion trade provided a strong boost to the greenback's status as the global reserve currency and was seen as a key factor exerting pressure on the major.
Despite the recent efforts by major central banks and governments across the world, market participants remained concerns that ever-increasing number of confirmed coronavirus cases and tighter lockdowns will take its toll on the global economy.
The strong bid tone surrounding the buck was further supported by stronger than expected ADP report, which showed that the number of people employed in the private sector declined by 27K in March as compared to consensus estimates pointing to a fall of 150K.
From a technical perspective, the pair seems to have confirmed a bearish break through an important confluence support near the 0.6100 area and hence, remains vulnerable to extend the decline further towards challenging the key 0.60 psychological mark.
Technical levels to watch