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


Today last price 0.7822
Today Daily Change 0.0049
Today Daily Change % 0.63
Today daily open 0.7773
Daily SMA20 0.7761
Daily SMA50 0.7719
Daily SMA100 0.7506
Daily SMA200 0.7292
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



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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD advances toward 1.20 amid an improving market mood

EUR/USD is rising toward 1.20, paring its losses as falling returns on US Treasuries push the dollar lower. Optimism about vaccines and a stronger global economy weigh on the greenback as well. US Building Permits, Housing Starts and Consumer Confidence are eyed.


GBP/USD rises toward 1.38 as the dollar weakens with yields

GBP/USD is trading closer to 1.38, recovering from the lows as falling US Treasury yields are dragging the dollar down ahead of several data releases. Sterling continues benefiting from Britain's vaccination campaign.


Stellar bulls on wrong side of uphill battle

XLM price has erected an ascending parallel channel on the 4-hour chart. A bounce from the setup’s lower trend line, although logical, seems unlikely. Stellar’s bear flag pattern on the 1-hour chart adds weight to the bearish outlook.

Read more

XAU/USD faces stiff resistance near $1,775, upside potential remains intact

Gold has been trending higher after taking support near the double bottom formation on the daily chart. However, XAU/USD now faces stiff resistance near the $1,775 hurdle. MACD indicator tilts in favor of bulls.

Gold News

Gamestop waits for breakout signal, technical levels to watch

GameStop is struggling for relevance as COIN takes over! GME shares under pressure, down 6% on Thursday. GME is looking for a new CEO according to Reuters.

Read more