AUD/USD retreats from daily tops, still well bid near 0.5900 mark

• AUD/USD stalled its strong intraday upsurge and failed ahead of the 0.60 mark.
• Fears of a global recession helped limit the USD corrective slide and capped gains.

The AUD/USD pair trimmed a part of its strong intraday gains and has retreated over 100-pips from daily highs, albeit maintained its strong bid tone just below the 0.5900 mark.

The Fed's decision to expand the currency swap lines to nine more countries helped eased market concerns about tightening liquidity. This eventually triggered some aggressive US dollar long-unwinding and led to the pair's short-covering bounce.

This coupled with a solid recovery in the global risk sentiment provided an additional boost to perceived riskier currencies, including the aussie, and contributed to the pair's intraday rally of over 300 pips on the last trading day of the week.

However, persistent worries about the economic fallout from the coronavirus pandemic extended some support to the greenback's status as the global reserve currency, which kept a lid on any further gain, rather prompted some selling at higher levels.

The pair started correcting from the vicinity of the key 0.60 psychological mark, albeit remained well above over 17-year lows set on Thursday. Nevertheless, the pair remains on track to post the second consecutive week of declines amid absent relevant market moving economic releases.

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