AUD/USD consolidates strong intraday recovery from multi-year lows, around mid-0.6900s

   “¢   A modest USD weakness helped  stage a solid rebound from almost a decade low.
   “¢   The recovery, however, remains capped amid the prevalent risk-aversion trade.  
   “¢   Traders now eye US economic docket for some short-term trading impetus.

The AUD/USD pair was seen oscillating in a narrow trading band just above mid-0.6900s and consolidated a strong intraday recovery from almost a decade low.

Worries about the health of the global economy, particularly China, prompted investors to move out of perceived riskier currencies and exerted some heavy downward pressure on the China-proxy Australian Dollar.  

The pair collapsed to its lowest level since March 2009 but managed to recover nearly 200-pips from the Asian session flash crash low level of 0.6771 and the up-move was supported by a modest US Dollar weakness.

However, the prevalent risk-off mood continued underpinning the greenback relative safe-haven status and kept a lid on any further up-move, with the pair’s attempted recovery failing ahead of daily tops.  

Next in focus will be the US economic docket, highlighting the release of ADP report on the US private sector employment and ISM manufacturing PMI, which will now be looked upon for some fresh trading impetus.

Technical levels to watch