AUD/USD climbs to daily highs above 0.7800 as USD weakens on falling T-bond yields
|- AUD/USD clings to daily gains above 0.7800 on renewed USD weakness.
- US Dollar Index drops below 91.00 as 10-year T-bond yield turns red.
- Mixed macroeconomic data releases from US failed to trigger a market reaction.
The AUD/USD pair broke above 0.7800 during the European trading hours and stayed relatively quiet before starting to push higher in the American session. As of writing, the pair was trading at a fresh daily high of 0.7820, rising 0.66% on a daily basis.
DXY loses traction as T-bond yields edge lower
The renewed USD strength seems to be helping AUD/USD preserve its bullish momentum in the second half of the day. In the absence of significant macroeconomic data releases, US Treasury bond yields continue to impact the greenback's market valuation. The US Dollar Index is currently losing 0.25% on the day at 90.82 and the benchmark 10-year US T-bond yield is down 1%.
Earlier in the session, the data from the US showed that the IBD/TIPP Economic Optimism Index improved to 55.4 in March from 51.9 in February but failed to trigger a meaningful market reaction. On a negative note, the ISM-NY Business Conditions Index fell to 35.5 in February from 51.2.
On the other hand, the Reserve Bank of Australia (RBA) offered no surprises following its latest monetary policy meeting. The RBA left its policy rate unchanged at 0.1% and repeated that it's prepared to make adjustments to its asset purchases if needed.
On Wednesday, the Commonwealth Bank Services PMI and the AiG Performance of Construction Index will be featured in the Australian economic docket.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.