AUD/USD off lows, still on the back-foot around mid-0.6900s

The AUD/USD pair quickly recovered around 20 pips from session lows and was last seen trading near the top end of its daily trading range, around mid-0.6900s.

The pair managed to find some support around the 0.6925 region, just ahead of weekly lows set on Tuesday. The modest intraday bounce was supported by a positive turnaround in the risk sentiment, which extended some support to the perceived riskier Australian dollar.

Despite concerns about the ever-increasing number of coronavirus cases, the US equity futures edged higher during the early European session. This, in turn, undermined demand for the safe-haven US dollar and remained supportive of the AUD/USD pair's rebound from lows.

Meanwhile, the upside remained limited amid concerns that renewed lockdown measures could again put breaks on the economic activity. It is worth reporting that Australia’s second-most populous state – Melbourne – returned to lockdown for six weeks starting this Wednesday.

This comes on the back of the previous day's dovish sounding RBA policy statement and intraday rejection slide from the 0.7000 psychological mark, or four-week tops. Hence, it will be prudent to wait for some follow-through buying before positioning for any further appreciating move.

In the absence of any major market-moving economic releases, developments surrounding the coronavirus saga might continue to influence the USD price dynamics. This coupled with the global risk sentiment will further contribute to produce some meaningful trading opportunities.

Technical levels to watch