AUD/USD bid near 0.7270 despite the uptick in US yields


  • AUD/USD is looking to extend its three-day winning run. 
  • Iron ore rally oveshadows uptick in US yields, keeps AUD bid. 

AUD/USD is maintaining its recent upward momentum despite the US bond yields rising in the greenback-positive manner. 

At press time, the currency pair is better bid near 0.7270, having printed gains for the third consecutive day on Thursday. Meanwhile, the yield on the US 10-year Treasury note is trading at 2-½ month highs near 0.78%, having increased by 10 basis points to 0.75% on Thursday. 

Uptick in US yields usually draws bids for the American dollar. However, the AUD/USD pair is currently showing resilience, possibly tracking iron ore’s rally to 6-years highs on Thursday. Iron ore, one of Australia’s top exports, has risen by over 30% this year on hopes of recovery in China, the world’s second-largest economy and biggest importer of commodities

Also, the Federal Reserve’s latest decision to adopt a more relaxed inflation policy may be keeping the dollar under pressure. Fed’s chairman Powell, while speaking at the Jackson Hole event on Thursday. Said the central bank will now be more willing to allow inflation to rise above the 2% inflation target before raising interest rates

However, big gains in AUD/USD may remain if China’s latest decision to ban imports of beef from an Australian firm elicits a tit-for-tat reaction from Canberra. 

Technical levels

AUD/USD

Overview
Today last price 0.7269
Today Daily Change 0.0010
Today Daily Change % 0.14
Today daily open 0.7259
 
Trends
Daily SMA20 0.7181
Daily SMA50 0.7067
Daily SMA100 0.6829
Daily SMA200 0.673
 
Levels
Previous Daily High 0.7291
Previous Daily Low 0.7217
Previous Weekly High 0.7277
Previous Weekly Low 0.7134
Previous Monthly High 0.7228
Previous Monthly Low 0.6876
Daily Fibonacci 38.2% 0.7262
Daily Fibonacci 61.8% 0.7245
Daily Pivot Point S1 0.7221
Daily Pivot Point S2 0.7182
Daily Pivot Point S3 0.7147
Daily Pivot Point R1 0.7294
Daily Pivot Point R2 0.7329
Daily Pivot Point R3 0.7368

 

 

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