AUD/USD off multi-week lows, still in the red below mid-0.6800s

• AUD/USD drifted lower for the fifth straight session on Wednesday.
• Concerns over coronavirus continued to weigh on the China-proxy aussie.
• The prevalent USD bullish bias further added to the selling pressure.

The AUD/USD pair remained depressed and dropped to fresh six-week lows during the Asian session on Wednesday, albeit managed to recover few pips thereafter.

The pair added to its recent losses and witnessed some follow-through selling for the fifth consecutive session on Wednesday. Concerns over the outbreak of a new coronavirus in China turned out to be one of the key factors exerting pressure on the China-proxy Australian dollar.

Aussie weighed down by a combination of factors

This coupled with the prevailing bullish sentiment surrounding the US dollar further collaborated to the pair's slide to the lowest level since December 11. The greenback remained supported by fading prospects of any further rate cut by the Fed and got an additional boost from a goodish pickup in the US Treasury bond yields.

However, a recovery in the global risk sentiment, as depicted by a positive trading mood around equity markets, extended some support to perceived riskier currencies – including the aussie – and helped limit deeper losses, at least for the time being.

Moving ahead, there isn't any major market-moving economic data due for release from the US. Hence, the broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the pair's intraday momentum on Wednesday.

Technical levels to watch