AUD/USD flirting with session lows, just above 0.6700 mark

AUD/USD snaps three consecutive days of winning streak amid renewed the risk-off mood.
Sliding US bond yields held the USD bulls on the defensive and might help limit the downside.
Investors now look forward to the US consumer inflation figures for some short-term impetus.

Haresh Menghani FXStreet

The AUD/USD pair edged lower through the Asian session on Thursday and is currently placed near the lower end of its daily trading range, just above the 0.6700 mark.

The pair stalled its recent recovery move from over a decade low and came under some fresh selling pressure on Thursday. Renewed concerns over the outbreak of the deadly coronavirus turned out to be one of the key factors exerting some pressure on the China-proxy aussie.

Aussie weighed down by fresh coronavirus fears

The fact that China's Hubei province reported a sharp jump in the number of new cases led to a fresh wave of the global risk-aversion trade. The global flight to safety benefitted the US dollar's perceived safe-haven status against its Australian counterpart and exerted some pressure.

The pair has now reversed the previous session's positive move to near one-week tops, albeit the risk-off mood-led slide in the US Treasury bond yields held the USD bulls on the defensive and might help limit deeper losses, at least for the time being.

Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent corrective bounce might have already run out of the steam and positioning for the resumption of the pair's prior bearish trend.

Moving ahead, market participants now look forward to the US economic docket, highlighting the release of the latest consumer inflation figures, which might influence the USD price dynamics and produce some meaningful trading opportunities.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6716
Today Daily Change	-0.0021
Today Daily Change %	-0.31
Today daily open	0.6737

Trends
Daily SMA20	0.677
Daily SMA50	0.6851
Daily SMA100	0.683
Daily SMA200	0.6859

Levels
Previous Daily High	0.6751
Previous Daily Low	0.6711
Previous Weekly High	0.6775
Previous Weekly Low	0.6662
Previous Monthly High	0.704
Previous Monthly Low	0.6682
Daily Fibonacci 38.2%	0.6736
Daily Fibonacci 61.8%	0.6726
Daily Pivot Point S1	0.6715
Daily Pivot Point S2	0.6693
Daily Pivot Point S3	0.6675
Daily Pivot Point R1	0.6755
Daily Pivot Point R2	0.6773
Daily Pivot Point R3	0.6795

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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