AUD/USD: Bounces off intraday low above 0.7600 on Aussie data, halt in bond rout
|- AUD/USD picks up bids from the day’s low after upbeat NAB Business Confidence, Conditions.
- US 10-year Treasury yields snap four-day losing streak with minor intraday losses.
- S&P 500 Futures add over half a percent as the $1.9 trillion US covid aid package inches closer to reality.
AUD/USD wavers around the mid-0.7600s, recently bouncing off an intraday low of 0.7631 to 0.7647, during Tuesday’s Asian session. In doing so, the aussie pair respects upbeat figures from the National Australia Bank (NAB) as well as a pause in the US 10-year Treasury yields rally.
NAB’s Business Conditions and Business Confidence both crossed prior figures of 7 and 10 respectively with 15 and 16, in that order, during February.
On the other side, the US 10-year Treasury yields drop one basis point (bps) while snapping the four-day winning streak to revisit the 1.58% level. Also, the S&P 500 Futures print 0.67% intraday gains to 3,845 by the press time and offer extra strength to the risk-on mood.
Behind the plays could be the increasing hopes of the much-awaited US covid aid package from President Joe Biden as the House is ready to vote on the bill on Wednesday. However, in her recent remarks, House Speaker Nancy Pelosi raised expectations that the stimulus package may arrive on Wednesday rather than widely anticipated Tuesday.
Moving on, a light calendar in Asia will keep the AUD/USD pair traders directed towards risk catalysts, mainly the stimulus updates. However, Treasury moves will be the key to watch. Also important will be the RBA Governor Philip Lowe’s speech at 22:00 GMT on Tuesday. Although RBA’s Lowe is cautiously optimistic on the Aussie economy and AUD/USD, traders will watch for hints of further monetary policy outlook to determine near-term moves.
Technical analysis
The latest bounce needs to cross February’s low of 0.7691 to recall short-term buyers, failing to do so keeps the AUD/USD traders directed towards an ascending trend line from December 21, 2020, currently around 0.7635.
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