AUD/USD corrects further from multi-week tops, slides below 0.6500 mark and rebounds

The AUD/USD pair dived to fresh daily lows, below the key 0.6500 psychological mark, albeit quickly recovered few pips thereafter.

The pair stalled its recent bullish trajectory to seven-week tops and witnessed a sharp pullback from 100-day SMA barrier. The intraday slide picked up some additional pace during the early North-American session following the release of Initial Weekly Jobless Claims.

According to the latest report, the number of Americans seeking unemployment-related benefits rose 3.839 million in the week running from April 19 to April 25. This sums up to about 30 million job losses in a month and a half due to coronavirus-induced lockdowns.

The data added to concerns over the severity of the economic damage caused by the pandemic. This, in turn, provided a goodish lift to the US dollar's status as the global reserve currency and turned out to be one of the key factors exerting some pressure on the aussie.

This coupled with a weaker tone around the equity markets further underpinned the greenback's relative safe-haven status against the perceived riskier currency – the Australian dollar – and further collaborated to the pair's intraday slide of around 80 pips.

It will now be interesting to see if the pair can attract any dip-buying at lower levels or the current pullback marks the end of the recent strong recovery move of over 1000 pips from the vicinity of the key 0.5500 psychological mark, or 17-year lows set on March 19.

Technical levels to watch