- AUD / USD is trading in positive territory at the beginning of the week.
- The US Dollar DXY Index remains above 91.00 after last week’s jump.
- The focus is on US Manufacturing PMI data from Markit and ISM.
The pair AUD/USD lost over 150 pips and snapped a three-week winning streak last week, but started on a firm tone on Monday. However, after bouncing to a daily high of 0.7774, the pair has lost its bullish momentum and has started to pay back his winnings. At time of writing, AUD / USD is up 0.43% on the day at 0.7728.
USD remains strong despite positive risk sentiment
The strong Observed rally in US Treasury yields provided a strong boost to the dollar last week, with the DXY US Dollar Index gaining 0.6% on a weekly basis. At the time of writing, the benchmark 10-year Treasury yield is up about 1% on the day and the DXY index is posting small gains above 91.00 despite market optimism.
Earlier in the day, data from Australia showed that Business activity in the manufacturing sector continued to expand at a solid pace in February with the Commonwealth Bank Manufacturing PMI reaching 56.9.
Later in the session, IHS Markit and ISM to Release February US Manufacturing PMI Reports. More importantly, New York Federal Reserve Chairman John Williams and Federal Reserve Governor Lael Brainard will deliver speeches and investors will pay close attention to comments on bond yields and concerns about the inflation.
Meanwhile, S&P 500 futures are up 1.2% on the day and a decisive rally in major Wall Street indices could make it difficult for the US dollar to continue to gain strength in the second half of the day.
AUD / USD technical levels
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