- AUD / USD is still on track to close the day with little change.
- The US Dollar Index clings to daily gains around 92.50.
- RBA’s Debelle says a rate hike is unlikely until 2024.
The pair AUD/USD It fell to its lowest level in more than a month at 0.7584 on Wednesday, but managed to erase its daily losses in the second half of the day. After climbing to the 0.7630 zone and turning positive for the day, however, the pair was unable to preserve its recovery momentum and was last seen posting small daily losses at 0.7614.
Rising US Treasury Yields Back the US Dollar Wednesday
The USD market valuation remains the main driver for AUD / USD midweek. During Asian trading hours, risk aversion provided a boost to the dollar and weighed on the pair. Although the improved market sentiment allowed the pair to rebound, the general strength of the USD limited the upside.
In the absence of major macroeconomic data releases, the US dollar index (DXY) It gained traction and the benchmark 10-year US Treasury yield turned positive the day after a two-day drop. Currently, the DXY is up 18% on the day at 92.50.
Earlier in the day, Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle said they will not increase the policy rate until they see inflation return sustainably to the 2-3% range, adding that This is not expected to happen until 2024.
On the other hand, the US Census Bureau reported that durable goods orders in February declined 1.1%, compared with analysts’ estimate of a 0.8% increase.
On Thursday, the final estimate from the US Bureau of Economic Analysis of fourth-quarter GDP growth data and initial US weekly job application data.
Technical levels
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