The AUD/USD pair quickly retreated around 35-40 pips from the Asian session swing highs and refreshed daily lows, around the 0.7020-15 region in the last hour. The pair failed to capitalize on its attempted recovery move, instead met with some fresh supply near the 0.7055 region and has now drifted into the negative territory for the third consecutive session. Growing market worries about the economic fallout from news COVID-19 restrictions continued weighing on investors' sentiment. This was evident from a steep decline in the US equity futures, which, in turn, drove flows away from the perceived riskier Australian dollar.
From a technical perspective, the AUD/USD pair, so far, has been finding decent support near the key 0.7000 psychological mark. This makes it prudent to wait for some strong follow-through selling before positioning for an extension of the recent pullback from the 0.7155-60 supply zone. The pair might then accelerate the fall further towards the 0.6940-35 region.