AUD/USD leaps to fresh 10-day highs above 0.6100 on USD selloff

• US Dollar Index slumped below 99 in American session.
• AUD/USD looks to close week more than 300 pips higher.
• UoM Consumer Sentiment Index registered second-largest monthly decline in March.

The AUD/USD pair gained traction in the last hour and added nearly 100 pips to touch its highest level in 10 days at 0.6156. As of writing, the pair was trading at 0.6143, adding 1.31% on a daily basis. For the week, the pair is up more than 300 pips.

USD selloff intensifies

The broad-based selling pressure surrounding the USD seems to have provided a boost to the pair. Although there was no clear catalyst behind the latest USD selling wave, week-end flows and liquidations into London-fix may have weighed on the greenback. The US Dollar Index, which tracks the USD's performance against a basket of six major currencies, was last seen erasing 0.7% on the day at 98.75.

Earlier in the day, the data published by the University of Michigan showed that the Consumer Sentiment Index dropped to 89.1 in March's final reading from 101 in February to record its second-largest monthly decline.

Commenting on the data, "the extent of additional declines in April will depend on the success in curtailing the spread of the virus and how quickly households receive funds to relieve their financial hardships." said Richard Curtin, Surveys of Consumers chief economist.

Technical levels to watch for