AUD/USD bounces off lows, still in the red just above 0.6300 mark
- AUD/USD edged lower for the second straight session on Tuesday.
- Sustained USD buying was seen as a key factor exerting some pressure.
- The pair managed to find some support after less dovish RBA minutes.
The AUD/USD pair has managed to recover around 35 pips from Asian session swing lows and is currently trading with only modest losses, comfortably above the 0.6300 mark.
The pair extended the previous day's rejection slide from the vicinity of the 0.6400 level and edged lower for the second consecutive session on Tuesday amid sustained buying around the US dollar.
The greenback remained well supported by worries over the coronavirus crisis and got an additional boost from the global flight to safety amid a historic slide in crude oil prices overnight.
This comes amid the prevailing cautious mood around the equity markets, which further collaborated towards driving flows away from perceived riskier currencies, including the Australian dollar.
The pair slipped to multi-day lows, around the 0.6285-80 region, albeit managed to find some support at lower levels following the release of less dovish RBA April monetary policy meeting minutes.
Meanwhile, the intraday uptick lacked any strong follow-through as investors refrained from placing aggressive bets, rather preferred to wait for additional clues that the pandemic may be peaking soon.
Hence, it will be prudent to wait for a sustained move in either direction before traders start positioning for the pair's near-term trajectory as the focus remains on developments surrounding the coronavirus saga.
Technical levels to watch