- AUD / USD continues to rise ahead of the weekend.
- The MU consumer confidence index fell to a multi-year low of 70.2 in August.
- The US dollar index remains on the defensive, falling towards 92.50.
The pair AUD/USD it extended its daily recovery during US business hours and touched a daily high of 0.7374. At time of writing, the pair was up 0.52% on the day at 0.7372.
Falling US Treasury Yields and Depressing Data Hurt the USD
Widespread USD weakness appears to be helping AUD / USD rally ahead of the weekend. US data revealed on Friday that the University of Michigan consumer sentiment index fell to its worst level in nearly a decade, 70.2 in August. This reading disappointing the market expectation of 81.2 by a wide margin and prompted a selloff of the USD. At the moment, the US Dollar Index is down 0.45% on the day at 92.57.
In evaluating the sentiment report, “there is little doubt that the resurgence of the pandemic due to the Delta variant has been met with a mixture of reason and emotion,” said Richard Curtin, chief economist at Surveys of Consumers. “Consumers have correctly reasoned that the performance of the economy will decline in the coming months.”
In addition to the disappointing data, the sharp drop seen in US Treasury yields is making it difficult for the USD to find demand. Currently, the benchmark yield on 10-year US Treasuries is losing 3.75% to 1.31%.
Technical levels
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