AUD/USD retreats further from 2-week tops, 0.60 mark back in sight
- AUD/USD failed to capitalize on its early uptick to near two-week tops.
- A goodish pickup in the USD demand exerted some downward pressure.
- A fresh leg down in the equity markets further weighed on the aussie.
The AUD/USD pair extended its steady intraday pullback from two-week tops and dropped to fresh session lows, around the 0.6025 region in the last hour.
The US dollar stalled its week-long decline and gain some positive traction on the last trading day of the week, which eventually turned out to be one of the key factors that prompted some selling around the major.
This coupled with a leg down in the global equity markets further weighed on the perceived riskier aussie and contributed to the pair's slide of nearly 100-pips from daily swing highs, near the 0.6125 region.
As investors digested the latest optimism over a massive $2.2 trillion US economic stimulus package, concerns over an imminent global recession were back on the table and weighed on investors' sentiment.
Meanwhile, the pair's recent strong recovery of over 600 pips from the vicinity of the key 0.5500 psychological mark, or over 17-year low, further seemed to have prompted bulls to lighten their positions.
In the absence of any major market-moving economic release from the US, the broader risk sentiment and the USD price dynamics might continue to play a key role in influencing the pair's momentum on Friday.
Technical levels to watch