AUD/USD consolidates the drop around 0.6550
- Aussie downed by US dollar resurgence alongside Treasury yields.
- Bulls fail find support from the oil-price rebound, as gold slips.
- Eyes on Australian economic stimulus package and coronavirus updates.
AUD/USD reversed almost a quarter of Monday’s recovery from a new decade low of 0.6320, as the bears fought back control amid a solid comeback staged by the US dollar across its main competitors.
The resurgent US dollar demand across the board seems to be the main story heading into the European open, which dragged the Aussie pair back below the 0.66 handle, with several attempts to regain the latter sold-off despite the risk-on action in the Asian equities.
The dollar surge is mainly associated to a massive rebound seen in the US Treasury yields following Monday’s dramatic fall induced by coronavirus fears and oil shock-led market havoc.
Over the last hour, the spot has stalled its decline and consolidates losses around 0.6550, as expectations of the Australian economic stimulus package to offset the virus impact continue to keep the buyers hopeful that it will help stimulate the OZ economy.
Further, the prices may also derive additional support should the oil-price recovery gain sustained momentum, as the correction in gold prices adds to the pressure on the commodity-linked currency, at the moment.
Markets will keep a close watch on the virus-related development and risk trends for the near-term trading opportunity in the major.
AUD/USD technical levels to watch