- AUD / USD is making small daily gains around 0.7750.
- The US dollar index falls below 91.80 during the American session.
- The yield on 10-year US Treasuries fell more than 2% on Monday.
The pair AUD/USD It fell towards the 0.7700 area during Asian trading hours on Monday, but managed to erase its daily losses in the second half of the day. At time of writing, the pair was up 0.09% on the day to 0.7709.
DXY continues to descend
In the absence of major macroeconomic data releases and fundamentals, movements in US Treasury yields continue to affect the market valuation of the dollar. With the benchmark 10-year US Treasury yield shedding 2.15% on the day, the US Dollar Index (DXY), which rose above 92.00 earlier in the day, is down 0.16% to 91.78.
US data showed Monday that the Chicago Fed’s national activity index fell to -1.09 in February from 0.75, compared with analysts’ estimate of 0.21.
Meanwhile, the market optimism at the beginning of the week, as reflected in the decisive gains seen in the major Wall Street indices, is putting additional weight on the shoulder of the dollar as a safe haven. At the moment, the S&P 500 Index is up 0.87% and the Nasdaq Composite is up 2.35%.
Later in the session, speeches by San Francisco Federal Reserve Chairman Mary Daly and Federal Reserve Vice Chairman Randal Quarles will be seen as further catalysts.
There will be no data release on the Australian economic calendar on Tuesday.
Technical levels
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