AUD / USD rises to daily highs above 0.7800 as USD weakens amid falling Treasury yields

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  • AUD / USD clings to daily gains above 0.7800 amid renewed USD weakness.
  • The US Dollar Index falls below 91.00 as 10-year Treasury yields turn lower.
  • The release of mixed macroeconomic data from the US failed to trigger a market reaction.

The pair AUD/USD it broke above 0.7800 during European trading hours and remained relatively quiet before starting to rally in the US session. At time of writing, the pair is trading at a fresh daily high of 0.7820, rising 0.66% on the day.

DXY Loses Traction As Treasury Yields Fall

Renewed USD strength appears to be helping AUD / USD preserve its bullish momentum in the second half of the day. In the absence of major macroeconomic data releases, US Treasury yields continue to affect the market valuation of the dollar. The US Dollar Index is currently shedding 0.25% on the day at 90.82 and the benchmark 10-year US Treasury yield is down 1%.

Earlier in the session, US data showed that the IBD / TIPP Economic Optimism Index improved to 55.4 in March from 51.9 in February, but failed to trigger a significant market reaction. On a negative note, the ISM-NY Trade Conditions Index fell to 35.5 in February from 51.2.

On the other hand, the Reserve Bank of Australia (RBA) offered no surprises after its last monetary policy meeting. The RBA left its policy rate unchanged at 0.1% and repeated that it is prepared to make adjustments to its asset purchases if necessary.

On Wednesday, the Commonwealth Bank Services PMI and the AiG Performance of Construction Index will present the Australian economic agenda.

Technical levels

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