AUD/USD clings to gains near session tops, comfortable above 0.7100 handle
• Builds on the overnight goodish up-move and climbs further beyond the 0.7100 handle.
• The USD bulls seemed rather unimpressed by a goodish rebound in the US bond yields.
• Uncertainty over US-China trade talks capping gains ahead of the US economic releases.
The AUD/USD pair held on to its mildly positive tone through the early European session and is currently place at the top end of its daily trading range, around the 0.7125-30 region.
The pair built on the overnight goodish up-move back above the 0.7100 handle and continued gaining positive traction for the second consecutive session on Tuesday following some upbeat comments by the RBA Assistant Governor Luci Ellis, who praised the strength of the domestic labor market.
This coupled with a subdued US Dollar price action, albeit now seemed to have found some interest from a goodish rebound in the US Treasury bond yields, provided an additional boost and remained supportive of the pair's intraday uptick to a multi-day high level of 0.7131.
However, fresh concerns over lower US economic growth, sparked by inversion of the 3-month and 10-year Treasury yields for the first time since 2007, coupled with uncertainties over the US-China trade negotiations kept a lid on any strong follow-through up-move for the perceived riskier/China-proxy Australian Dollar.
Next on tap will be the US economic docket, featuring the release of housing market data - housing starts and building permits, which followed by the Conference Board's Consumer Confidence Index will now be looked upon for some fresh impetus later during the early North-American session.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
