AUD/USD plummets below 0.7750 on renewed USD strength
|- AUD/USD made a sharp U-turn in the late American session.
- US Dollar Index rose to a fresh monthly high above 91.40.
- 10-year US Treasury bond yield shot higher after FOMC Chairman Powell's remarks.
The AUD/USD pair came under strong bearish pressure in the late American session and lost more than 60 pips in the last hour. As of writing, the pair was down 0.45% on a daily basis at 0.7742.
DXY advances toward 90.50
The renewed USD strength seems to be weighing heavily on AUD/USD. While speaking at an event organized by the Wall Street Journal, FOMC Chairman Jerome Powell said that they would be concerned "by a persistent tightening of financial conditions broadly" and refrained from touching on the bond market turmoil.
Powell Quick Analysis: Markets set to suffer for two more weeks as Fed mostly dismissed bond rout.
With the initial market reaction, the 10-year US Treasury bond yield rose sharply and provided a boost to the greenback. At the moment, the US Dollar Index is trading at its highest level in a month at 90.43, rising 0.53% on a daily basis.
In the early trading hours of the Asian session, the AiG Performance of Services Index will be featured in the Australian economic docket but investors are likely to remain focused on the US T-bond yields and the USD's market valuation.
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.