- Risk appetite helped the AUD perceived as riskier to gain traction on Monday.
- Rising US bond yields reactivated demand for USD and limited any significant gains.
The pair AUD/USD It maintained its offered tone during the early American session and was last seen trading around the 0.7485-90 zone, rising 0.35% on the day.
The pair attracted new purchases on the first day of a new trading week amid the prevailing environment of risk appetite in the markets, which tends to benefit the perceived riskier Aussie. However, a good recovery in the US dollar did not help the AUD / USD to capitalize on its move or find acceptance above the key psychological level 0.7500.
The dollar received some support from rising US Treasury yields and posted a solid rally from nearly a month’s lows hit earlier Monday. In fact, the yield on the 10-year US government bond remained stable above the 1.65% level, increasing acceptance of the Fed adjusting its policy earlier than expected.
Fed Chairman Jerome Powell reaffirmed Friday that the US central bank remains on track to begin rolling back its massive pandemic-era stimulus. Markets have also been weighing the possibility of a possible interest rate hike in 2022 amid concerns that the recent widespread rebound in commodity prices will fuel inflation.
This, in turn, was seen as a key factor holding any significant gains for the AUD / USD pair at bay amid the absence of relevant economic releases in the US market. Investors also refrained from making. aggressive bets, they preferred to wait on the sidelines before this week’s important macroeconomic data from Australia and the US.
Quarterly consumer inflation figures for Australia will be released on Wednesday. This, coupled with the advanced US Q3 GDP report on Thursday, will help determine the next leg of a directional move for the AUD / USD pair. Meanwhile, USD price dynamics and overall market risk sentiment will be considered to gain some trading momentum.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
