AUD/USD drops 1.0% below 0.5900 as US Senate members jostle over the aid package

• AUD/USD declines following the pullback from the weekly top.
• US Democrats show disappointment from the US bill, which could delay the final voting on the $2.2 trillion stimulus package.
• Coronavirus fears renew amid fresh headlines from Japan and the UK.
• COVID-19 bill, pandemic data/updates will be the keys to watch.

While extending its pullback moves from the one-week high, AUD/USD declines to 0.5893, currently around 0.5905, amid the Asian session on Thursday. Although the US policymaker’s nearness to the much-awaited COVID-19 Bill propelled the market’s risk-on tone the previous day, doubts concerning the details weigh on the sentiment off-late. Also exerting downside pressure on the risk could be the coronavirus (COVID-19) updates from the UK and Japan.

The US House Speaker Nancy Pelosi recently challenged the optimism concerning the estimated $2.2 trillion package. The CNN Correspondent relied on the sources to say, “Pelosi is making clear to her members who are disappointed that the pending stimulus bill did not include enough of their priorities that they will have a chance to add those provisions in the fourth package.”

It should also be noted that the recent spike in the UK’s virus numbers as well as worries concerning a likely lockdown in Tokyo, due to the increasing disease, recently seem to weigh on the risk-on tone.

Also to note is the RBA’s Quantitative Easing (QE) operations that recently offered to buy Australian government bonds worth 3 billion Australian dollars that carry maturities ranging from May 2021 to April 2024.

Investors will now look forward to the likely voting on the amendments of the US aid package as well as the coronavirus updates for fresh impulse.

Technical analysis

In addition to the AUD/USD pair’s failure to stay positive above 0.6000, downtick below the 10-day SMA level of 0.5930 also portrays the quote’s underlying weakness.