AUD/USD - Yield spread rises in AUD-positive manner
|- Aussie holds above 50-day MA.
- AU-US yield spread widens, AUD/USD could test 200-day MA hurdle.
Despite the US tax reform optimism and the resulting rise in the Treasury yields, the AUD/USD pair is trading above the 50-day MA of 0.7659.
The resilience is not surprising, given the spread or the difference between the 10-year Aussie bond yield and the US Treasury yield has increased in the AUD-positive manner to 19 basis points (bps) today from the previous day's print of 12 bps.
The AUD favorable yield spread indicates the spot could rise to 200-day MA hurdle of 0.7692.
AUD/USD Technical Levels
FXStreet Chief Analyst Valeria Bednarik writes, "the pair seems to have found a comfort zone between 0.7630 and 0.7700 after recovering from a multi-month low of 0.7503, now waiting for the next catalyst that could determinate whether this latest recovery has been corrective or not. Short term, the pair retains its neutral stance for a fourth consecutive trading day, with the 4 hours chart showing that indicators have now settled around their mid-lines, as the price hovers below a horizontal 20 SMA.
Support levels: 0.7640 0.7600 0.7570
Resistance levels: 0.7700 0.7730 0.7770
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.