- The prevailing cautious mood exerted some pressure on AUD/USD earlier this Thursday.
- Persistent selling bias surrounding the USD helped limit deeper losses/regain traction.
The AUD/USD pair has managed to rebound around 80 pips from Asian session lows and is currently placed near the top end of its daily trading range, around mid-0.5900s.
The pair extended the precious day’s pullback from over one-week tops and witnessed some follow-through downfall through the early part of Thursday’s trading session amid the prevailing cautious mood around the global financial markets.
Despite the latest optimism over the passage of a massive $2 trillion US stimulus package, concerns over the continuous spread of COVID-19 and its negative impact on the global economy continued weighing on investors’ sentiment.
This was evident from a mixed action in the equity markets, which turned out to be one of the key factors exerting some pressure on perceived riskier currencies – like the aussie. However, persistent US dollar selling bias helped limit deeper losses.
The greenback witnessed some follow-through selling for the fifth straight session on Thursday in wake of the Fed’s unlimited QE program announced earlier this week, which helped ease concerns over tightening liquidity conditions.
Moving ahead, market participants now look forward to the US economic docket, featuring the release of the highly anticipated initial weekly jobless claims and the final Q4 GDP growth figures, for some short-term trading impetus.
Technical levels to watch