AUD/USD consolidates the gains below 0.6650 amid falling oil, gold prices

• Aussie stands tall amid risk-off, tracks the surge in Kiwi.
• The T-yields crash and dollar slump underpin the AUD.
• Sell-off in oil and gold prices keep the upside capped.

Having hit a fresh two-week high at 0.6658 earlier this Friday, AUD/USD has entered a phase of consolidation in the US session, now trading around 0.6630, up 0.30% on the day.

The upside in the Aussie is mainly driven by the massive rally in the NZD/USD pair amid a broad-based US dollar sell-off. The greenback tumbled alongside the US Treasury yields, as investors flocked to alternative higher-yielding assets, the Antipodeans, thereby bumping up their demand.

However, the further gains in the spot remain limited by the risk-off trading in the global stocks, as the coronavirus count rises rapidly across the globe and spooks investors. Also, the slump in oil prices, amid a fallout in the OPEC+ meeting to extend the oil output cuts, kept a lid on commodity-linked currency, the AUD.  

Meanwhile, the bulls also remain concerned by the sharp reversal in gold prices from seven-year highs, in the wake of demand for liquidity amid falling equities. The side trend is likely to extend into the NY close, as the upbeat US NFP data did little to deter the Aussie bulls.

AUD/USD technical levels to consider