AUD/USD bounces off lows, turns neutral around 0.6230 region
- AUD/USD witnessed a modest intraday pullback from multi-week tops.
- A combination of supporting factors helped limit any meaningful slide.
The AUD/USD pair edged lower on Thursday and refreshed session lows in the last hour, albeit showed some resilience below the 0.6200 mark.
The pair stalled its recent positive momentum near mid-0.6200s and witnessed a modest intraday pullback from near four-week tops following the release of the RBA’s Financial Stability Report (FSR).
The report cited that the Aussie financial system was strong initially before now faces increased risks due to heightened uncertainty related to the coronavirus pandemic, which prompted some selling.
However, fresh optimism over forecasts that the pandemic peak could come soon remained supportive of the risk-on mood and continued lending some support to perceived riskier currencies, like the aussie.
This coupled with a subdued US dollar price action, possibly on the back of a weaker tone surrounding the US Treasury bond yields, further collaborated towards limiting any meaningful downside for the pair.
The pair quickly recovered around 30-35 pips from daily lows and is currently placed in the neutral territory, around the 0.6230 region as the market attention now turns to the US macro releases.
Thursday's US economic docket highlights the release of initial weekly jobless claims, which along with March PPI figures might influence the USD price dynamics and provide some trading impetus.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
