- AUD / USD maintains its bullish momentum during the American session.
- Falling Treasury yields continue to weigh on the dollar.
- The US Dollar Index falls to fresh three-week lows below 92.00.
The pair AUD/USD It fell below 0.7600 before the US session, but posted an impressive rebound in the second half of the day. At time of writing, the pair was up 0.22% on the day at 0.7639.
USD selloff accelerates after CPI data
During European trading hours, cautious market mood and widespread USD strength amid rising US Treasury yields weighed on AUD / USD. However, the dollar came under heavy pressure after monthly data released by the US Bureau of Labor Statistics revealed that the rise in inflation in March was not as significant as speculated.
On an annual basis, the Basic Consumer Price Index (CPI), which excludes volatile food and energy prices, in the US increased to 1.6% from 1.3% in February and was slightly higher than the market expectation of 1.5%.
With the initial reaction to the data, the 10-year US Treasury yield turned south, causing the US dollar index (DXY) to lose its traction. At the moment, the DXY is shedding 0.22% and is trading at its lowest level in three weeks at 92.86, while the 10-year US Treasury yield is falling 2.65%.
On Wednesday, Westpac’s Consumer Confidence Index will be placed on Australia’s economic agenda. Later in the session, market participants will closely follow FOMC President Jerome Powell’s speech.