AUD/USD sits near 1-month tops, above mid-0.6800s
|- PBoC’s decision to leave rates unchanged helped regain some traction.
- A pickup in the US bond yields underpinned the USD and capped gains.
The AUD/USD pair held on to its positive tone through the early European session on Monday and is currently placed at over one-month tops, above mid-0.6800s.
Following an initial dip to an intraday low level of 0.6840, the pair managed to regain some positive traction and added to its recent strong gains in reaction to the Peoples Bank of China's (PBOC) surprise decision to leave the benchmark rate unchanged.
A modest USD uptick capping gains
The coupled with the prevalent risk-on mood further drove flows towards perceived riskier currencies and provided an additional boost to the China-proxy Australian Dollar, albeit a modest US Dollar uptick kept a lid on any strong follow-through.
A goodish rebound in the US Treasury bond yields underpinned the USD and eventually capped gains for the major. However, growing odds of another Fed rate cut in October might continue to weigh on the Greenback and help limit any intraday pullback.
The pair remains at the mercy of the USD price dynamics and any incoming trade-related headlines amid absent relevant market-moving US economic releases on the first day of a new trading week.
Technical levels to watch
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.