AUD/USD witnessed strong selling for the fifth day in a row 

The AUD/USD pair extended its losses and witnessed strong selling for the fifth day in a row on Thursday. The pair dropped to lows for more than two months, around the 0.7030 zones. 

The AUD/USD continued its recent bearish move and retraced more than 300 pips from near the 0.7345 resistance zone.

There has been a sustained buying interest in the US dollar. Investors lost their confidence because of the worries about the second wave of the coronavirus and its consequences on the economic recovery. Renewed coronavirus nervousness and risk-off sentiment benefited the safe-haven USD.  

Federal Reserve called for more fiscal stimulus

On Wednesday, the United States Central Bank officials emphasized the need for greater fiscal stimulus to support the economic recovery. Powell stated that many borrowers would benefit from these programs. But for others, a loan that could be challenging to repay might not be the answer, and in these cases, direct financial support may be needed.

However, the US dollar bulls overlooked those warnings.  

The coronavirus saga development could provide a boost for Aussie

On the other hand, the risk-off money flow has weighed on the perceived riskier Australian dollar further. As a result, it caused a decline in the AUD/USD pair.

Technical selling below the 0.7100 level further contributed to the pair’s continued decline. 

Investors are looking forward to the US economic events. The country will release weekly initial jobless claims and new home sales data. Besides, there are statements of Federal Reserve chairman Jerome Powell and Treasury Secretary Steven Mnuchin scheduled. It is likely to influence the dynamics of the USD price and provide some boost in trading. 

On the other hand, the AUD/USD pair evolution depends on how the coronavirus pandemic develops in the future.