- 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.
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