AUD/USD moves back closer to multi-week tops, around mid-0.6400s
- AUD/USD witnessed a modest intraday pullback amid resurgent USD demand.
- A fresh rout in oil prices added to coronavirus jitters and benefitted the buck.
- The downside remains limited amid optimism over the re-opening of economies.
The AUD/USD pair has managed to rebound around 20-25 pips from session lows and is currently placed near the top end of its daily trading range, around the 0.6455-60 region.
The pair witnessed a modest pullback during the Asian session on Tuesday and eroded a part of the overnight strong gains to six-week tops, albeit lacked any strong follow-through selling.
A fresh rout in crude oil prices added to concerns over the economic fallout from the coronavirus pandemic and provided a fresh lift to the US dollar's status as the global reserve currency.
This coupled with a softer tone around the equity markets undermined demand for perceived riskier currencies, including the aussie, and contributed to the pair's early downtick on Tuesday.
However, the latest optimism over the easing of coronavirus-related restrictions and a push to accelerate the gradual re-opening of the economies extended some support to the major.
Meanwhile, the emergence of some dip-buying comes on the back of the recent break through a near four-month-old descending trend-line resistance and supports prospects for additional gains.
Some follow-through buying beyond the overnight swing highs, around the 0.6470 region, will reaffirm the bullish bias and set the stage for a move beyond the key 0.6500 psychological mark.
Market participants now look forward to Tuesday's US economic docket, which highlights the release of the Conference Board's Consumer Confidence Index, for some short-term trading opportunities.
Technical levels to watch