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

AUD/USD

Overview
Today last price 0.7822
Today Daily Change 0.0049
Today Daily Change % 0.63
Today daily open 0.7773
 
Trends
Daily SMA20 0.7761
Daily SMA50 0.7719
Daily SMA100 0.7506
Daily SMA200 0.7292
 
Levels
Previous Daily High 0.7787
Previous Daily Low 0.7706
Previous Weekly High 0.8008
Previous Weekly Low 0.7692
Previous Monthly High 0.8008
Previous Monthly Low 0.7562
Daily Fibonacci 38.2% 0.7756
Daily Fibonacci 61.8% 0.7737
Daily Pivot Point S1 0.7723
Daily Pivot Point S2 0.7674
Daily Pivot Point S3 0.7642
Daily Pivot Point R1 0.7805
Daily Pivot Point R2 0.7837
Daily Pivot Point R3 0.7886

 

 

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