AUD/USD turns positive as AU-US yield spread rises 6 bps, focus on today's close

  • AUD/USD is now trading in the green, having hit a low of 0.7164 earlier today.
  • The AU-US 10-year yield spread is on the rise, thus the AUD may rise further.
  • A close above 0.7192 is needed to validate Friday's bullish outside day.

The AUD/USD pair seems to have picked up a bid, tracking the rise in the spread between the Australian and US 10-year government bond yields.

The currency pair is currently trading at 0.7180, representing a 0.10 percent gain on the day, having hit a low of 0.7164 earlier today.

Meanwhile, the 10-year yield spread is seen at -60 basis points; up eight basis points from Friday's close of -68 basis points.

The fact that the uptick in the AUD is accompanied by an improvement in the AU-US yield differential indicates the pair could rise further, possibly above Friday's high of 0.7192. A close above that level would add credence to the bullish outside day (candle) created on Friday and open the doors for a re-test of recent highs near 0.73.

More importantly, a bullish close looks likely as riskier assets appear to be cheering the US' decision to soften its stance on China's subsidies in a bid to secure a deal next month.

Technical Levels

AUD/USD

Overview
Today last price 0.7179
Today Daily Change 0.0008
Today Daily Change % 0.11
Today daily open 0.7171
 
Trends
Daily SMA20 0.7111
Daily SMA50 0.711
Daily SMA100 0.7139
Daily SMA200 0.7195
Levels
Previous Daily High 0.7193
Previous Daily Low 0.7115
Previous Weekly High 0.7193
Previous Weekly Low 0.7087
Previous Monthly High 0.7168
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7163
Daily Fibonacci 61.8% 0.7145
Daily Pivot Point S1 0.7126
Daily Pivot Point S2 0.7082
Daily Pivot Point S3 0.7048
Daily Pivot Point R1 0.7204
Daily Pivot Point R2 0.7238
Daily Pivot Point R3 0.7282

 

 

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