AUD/USD is retreating after its 10% rally from the March 19 low failed to surmount resistance marked by the November 2008 monthly low.
Investors appear to reluctant to push for further gains as concerns related to the coronavirus crisis linger.
Despite a rally in equity markets, which lifted risk sentiment slightly, the U.S. dollar's bid persists as funding pressure refuse to subside, reflected in AUD/U.S.
currency basis swaps AUDCBS3M=ICAP widening again.
Technicals highlight the downside risks, with a long upper wick forming on the daily candle.
Monthly RSI, though oversold, indicates long-term momentum to the downside remains.
AUD/USD longs will need U.S. dollar funding issues to subside considerably to gain greater confidence and also see key resistances near 0.6075 and 0.6150 break.
A break above 0.6150 could drive short covering, which would likely result in a test of 0.6310/25 resistance.