AUD/USD plummets to fresh multi-year lows, fast approaching 0.6500 mark
- AUD/USD comes under some renewed selling pressure amid a sea of red across the globe.
- Collapsing US bond yields kept the USD bulls on the defensive but failed to ease the pressure.
The AUD/USD pair tumbled to fresh multi-year lows on Friday, with bears now looking to extend the downfall further towards challenging the key 0.6500 psychological mark.
The pair failed to capitalize on the previous day's attempted recovery move, rather met with some fresh supply ahead of the 0.6600 round-figure mark amid a brutal selloff in equities, deepening a week-long global market rout.
AUD/USD continues to lose ground
Investors turned increasingly fearful that the viral outbreak will wreak havoc on the global economy and continued boosting demand for the so-called safe-haven assets, which eventually weighed on perceived riskier currencies – like the aussie.
The global flight to safety forced the US Treasury bond yields to extend their recent slump and drop to fresh record lows on Friday. This kept the USD bulls on the defensive, albeit did little to stall the pair's ongoing slide to fresh 11-year lows.
As investors keep a close watch on any fresh developments surrounding the coronavirus saga, it will now be interesting to see if the pair is able to attract any buying at lower levels or continues with its steep decline – despite oversold.
Later during the early North-American session, the US economic docket – featuring the release of Personal Income/Spending data, Core PCE Price Index and Chicago PMI – will be looked upon to grab some short-term trading opportunities on the last day of the week.
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.
