AUD/USD hits fresh multi-year lows, around 0.6570 region

• AUD/USD comes under some fresh selling pressure on Wednesday.
• Coronavirus concerns continued to weigh on the China-proxy aussie.
• A modest USD rebound collaborated to the prevailing selling bias.

The AUD/USD pair edged lower through the Asian session on Wednesday and dropped to fresh 11-year lows, around the 0.6570 region in the last hour.

Follow-through the previous session's two-way/directionless trading action, the pair came under some selling pressure during the Asian session on Wednesday and pessimism over the coronavirus outbreak.

Aussie weighed down by a combination of factors

Growing market concerns over the outbreak of the deadly virus and its impact on the Chinese economy turned out to be one of the key factors that kept exerting pressure on the China-proxy Australian Dollar.

Bulls seemed rather unimpressed by a modest recovery in the global risk sentiment, which tends to benefit perceived riskier currencies – like the aussie – rather took cues from a modest US dollar uptick.

Some initial signs of stability in the global financial markets allowed the US Treasury bond yields to stage a goodish bounce from all-time lows, which eventually helped the USD to stall its recent corrective slide.

Meanwhile, the pair’s inability to register any meaningful recovery – despite near-term oversold conditions – suggests that the near-term bearish pressure might still be far from being over.

Hence, some follow-through weakness, towards challenging the key 0.6500 psychological mark, now looks a distinct possibility amid absent relevant market moving economic releases from the US.

Technical levels to watch