AUD/USD renews multi-year lows, closes in on 0.6300

• Risk aversion boosts demand for USD on Thursday.
• US Dollar Index climbs to 97.70 area in American session.
• Investors are still waiting for the US' coronavirus response package.

The AUD/USD pair continues to push lower on Thursday with the greenback capitalizing on risk-off flows. As of writing, the pair was at its lowest level in 11 years at 0.6313, erasing 2.65% on a daily basis.

DXY rally weighs on AUD/USD

With the surging number of coronavirus infections and heightened fears over a protracted global economic recession, financial markets remain in panic mode and the greenback continues to gather strength as a relatively safe alternative.

The US Dollar Index (DXY), which suffered heavy losses on plummeting US Treasury bond yields in the last couple of weeks, extended its rally into a third straight day on Thursday. As of writing, the index was up 1.27% on the day at 97.83. Although the 10-year US T-bond yield is down more than 17% on the day, capital seems to be flowing away from risk-sensitive currencies toward the USD to help the DXY push higher. 

In the current environment, investors seem to be ignoring macroeconomic data releases. Later in the day, market participants will be paying close attention to the US' coronavirus response bill.

Technical levels to watch for