AUD / USD retreats from 0.7520 as US Treasury yields rise.

• AUD / USD lost 30 pips in the last hour as US Treasury yields rose amid risk appetite in the market.
• The general strength of the US dollar weighs on the AUD / USD pair.
• US consumer confidence rose more than economists expected, AUD / USD barely moved.

The AUD/USD barely advancing during the American session, it is up 0.08%, trading at 0.7497 at time of writing. Earlier in the day, the pair fell to 0.7483, but rebounded from daily lows to touch a daily high of 0.7524, and finally settled at current levels.

Market sentiment is bullish on strong US Q3 corporate earnings, with nearly 81% of S&P 500 companies reporting earnings, beating expectations. Other factors, such as inflationary pressures and the tightening of monetary policy conditions, remain in the background.

However, in the last hour, rising US Treasury yields appear to change the tone of risk-sensitive currencies such as the Australian dollar. The US 10-year Treasury yield is advancing 0.07% to 1.636%, putting a brake on the AUD / USD move higher above 0.7500. Additionally, the US Dollar Index is back to 94.00, an increase of 0.18%, at press time.

Mixed US macroeconomic data ignored by AUD / USD traders

The US Economic Agenda showed the US House Price Index for August reading (MoM), which rose 1%, down from the 1.3% forecast. Additionally, the S & P / Case-Shiller (YoY) home price indices expanded 19.7% less than the 20.1% expected.

Additionally, US new home sales for September rose 0.8 million, better than the 0.76 million estimated by analysts. US consumer confidence for October improved to 113.8 from the expected 108.3.

The AUD / USD reaction was muted, but as US Treasury yields began to rise, the pair lost 30 pips, trading at current levels.

Next on the Australian economic docket, the RBA’s cut average CPI for the third quarter is expected to be 0.5%, while the consumer price index for the same period is estimated to increase by 0.8%.

Technical levels