AUD/USD slides below 0.6100 as risk-off picks up pace
- AUD/USD sees aggressive selling as risk-off gathers steam in Europe
- Solid jump in China’s Caixin Manufacturing PMI ignored.
- Coronavirus news flows, dollar dynamics and key US data in focus.
AUD/USD extends its bearish momentum into Europe and prints a new two-day low below 0.6100, having faced rejection near 0.6160 region in early Asia.
S&P: Major Aussie banks not at risk of downgrade amid pandemic
The bears gathered steam in early European trading after a renewed risk-aversion wave gripped the markets, as the ongoing concerns over the coronavirus pandemic and its impact on the global economy extend into a new quarter.
The US equity futures extended losses alongside the Treasury yields while European stock futures are down over 3% pointing to a negative start on the European indices.
Amid increased demand for havens, the US dollar is seen benefitting across the board, further aggravating the downside in the Aussie. The US dollar index bounced-off the 99.00 support area to now trade at 99.25, daily highs.
The fears over the coronavirus crisis seem to outweigh the surprise delivered by the Chinese Manufacturing Sector data released earlier today. China’s Caixin Manufacturing PMI arrived at 50.1 in March vs. 46 expected and 40.3 last.
Looking ahead, the dollar demand and coronavirus-led risk play will continue to influence the Aussie’s price moves. Markets also await the US ADP Employment Change and US ISM Manufacturing PMI data for fresh trading impetus.
AUD/USD technical levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
