AUD/USD Continues To Trade Heavily With Consolidation

AUD/USD is consolidating in the mid-0.7100s having nearly hit the 0.7100 level earlier in the session. The pair is on course for steep daily losses amid heightened pandemic fears.

A break of 0.7100 could see the pair drop quickly to 0.7000. The pair also tumbled below key support in the form of the late September low at 0.7170 on Friday and eventually fell as low as 0.71125, as risk assets were pummeled amid a spike in pandemic-related fears.

The pair has since recovered back to close to 0.7140, but still trades with losses of about 0.7% or 50 pips on the day and is on course to end the week down 1.2%.