AUD/USD slumps to lowest level since November 2008, trades near 0.6150

• Risk aversion starts to dominate markets in American session.
• US Dollar Index climbs to fresh two-week highs above 98.60.
• Wall Street's main indexes erase majority of early gains.

The AUD/USD pair came under strong selling pressure during the American session and erased more than 100 pips in an hours to slump to its lowest level since November 2008 at 0.6135. As of writing, the pair was down 1.23% on the day at 0.6160.

Markets turn risk-averse

A barrage of headlines surrounding the coronavirus outbreak seems to be forcing investors to move away from risk-sensitive assets, such as the AUD, ahead of the weekend and weighing on the pair. Reflecting the dismal market mood, Wall Street's main indexes, which started the day around 5% higher, erased the majority of the earlier gains.

On the other hand, the greenback is capitalizing on risk-off flows and keeping the bearish pressure on the pair intact. At the moment, the US Dollar Index is up 1% on the day near 98.60.

Later in the day, US President Trump will be holding a news conference on the coronavirus outbreak. According to some reports, President Trump could declare a national emergency to free up the funds needed in the economic relief package.

Technical levels to watch for