Aussie-US 10-year yield spread favor AUD/USD bears to attack key support line


  • Spread between 10-year UST and AGB shrinks off-late, currently around 0.027%.
  • AUD/USD battles an ascending trend line from June 15 after failing to bounce off 100-day SMA.

With the recently receding rate differentials between the 10-year government bond yields of Australia and the US, AUD/USD bears are attacking a four-month-old support line, while declines to 0.7050, during the early Asian trading on Tuesday.

Although the pair’s latest weakness could be attributed to its failures in crossing the 100-day SMA level of 0.7100, Kyle Rodda from the IG cites the diminishing difference between the 10-year Treasury yields of the US Treasury (UST) and the Australian Government Bonds (AGB) to weigh on the AUD/USD prices.

Currently, the 10-year US Treasury yields seesaw around 0.77% whereas its Aussie counterpart stays depressed near 0.750%.

With the bearish MACD joining the aforementioned downbeat catalysts, AUD/USD is likely to revisit the September month’s low of 0.7004 on the sustained downside below the said support line, at 0.7054 now.

Meanwhile, buyers are less likely to enter unless the pair successfully crosses the 100-day SMA level of 0.7101, which in turn will eye a falling trend line from the September 01, currently around 0.7200.

Traders await RBA minutes for fresh impulse while keeping the bearish bias.

Read: When are the RBA minutes and how might they affect AUD/USD?

AUD/USD daily chart

Trend: Bearish

Additional important levels

Overview
Today last price 0.7051
Today Daily Change -29 pips
Today Daily Change % -0.41%
Today daily open 0.708
 
Trends
Daily SMA20 0.714
Daily SMA50 0.7205
Daily SMA100 0.7097
Daily SMA200 0.6789
 
Levels
Previous Daily High 0.7099
Previous Daily Low 0.707
Previous Weekly High 0.7242
Previous Weekly Low 0.7055
Previous Monthly High 0.7414
Previous Monthly Low 0.7004
Daily Fibonacci 38.2% 0.7081
Daily Fibonacci 61.8% 0.7088
Daily Pivot Point S1 0.7067
Daily Pivot Point S2 0.7053
Daily Pivot Point S3 0.7037
Daily Pivot Point R1 0.7096
Daily Pivot Point R2 0.7112
Daily Pivot Point R3 0.7126

 

 

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