AUD/USD remains trapped in a range below 0.7200 level, focus shifts to Australian jobs report

• AUD/USD remains range bound just below 0.7200 amid tepid sentiment.
• US Treasury yields resume upward trend, although failing to boost USD.
• The focus shifts to Australian employment data due to be released on Thursday.

The pair AUD/USD moves laterally within a familiar range just below the 0.7200 level, lacking a clear directional bias, as investors remain divided amid a drop in oil prices and a resumption of the rise in US Treasury yields.

The risk sentiment remains gloomy, as investors continue to weigh the aggressive rate hike expectations from the Fed, starting at the March meeting, which has pushed US Treasury yields to the highest levels in two years. Benchmark 10-year US rates are trading close to 1.90%.

The renewed rise seen in yields has failed to boost the US dollar, which has helped support the AUD/USD pair. However, with the key oil pipeline between Iraq and Turkey resuming at full capacity, WTI oil prices correct from seven-year highs of $86.31, ending attempts higher in the currency-linked AUD. raw material prices.

On the home front, Westpac’s Australian consumer confidence index fell to 102.2 points in January, while New South Wales saw a record daily increase in new covid infections.

While the price action of yields will dominate broader market sentiment, investors are turning their attention to the australian labor market report which will be released on Thursday at 00:30 GMT. The country’s unemployment rate is expected to fall slightly to 4.5% in December vs. 4.6% previously. Australia is forecast to add some 30,000 jobs in the reported month.

AUD/USD additional levels