AUD / USD touches new daily lows below 0.7220 due to persistent USD strength

  • AUD / USD extended its decline to a new daily low at the start of the US session.
  • The US dollar index rose above 90.70 ahead of Wall Street’s opening bell.
  • Investors await February MU Consumer Confidence Index data.

The AUD/USD came under renewed downward pressure early in the US session and fell to a new daily low of 07218. At time of writing, the pair was down 0.35% on the day at 0.7222.

DXY continues to rise thanks to rising Treasury yields

In the absence of major macroeconomic data releases, rising US Treasury yields continue to affect the USD market valuation.

For now, the 10-year US Treasury yield has risen nearly 2% on the day to 1.19% and remains close to the 11-month highs it set at 1.2% last week. Meanwhile, the US Dollar Index (DXY), which tracks the dollar’s performance against a basket of six major currencies, is up 0.32% on the day at 90.71.

Later in the session, the University of Michigan Preliminary Consumer Sentiment Index will be examined for fresh momentum.

On the other hand, S&P 500 futures are down 0.3% minutes before the opening bell, suggesting that the USD could retain its strength in the second half of the day and made it difficult for the AUD / USD to rebound. Despite the daily decline, the pair is still on track to post small gains for the week.

Technical levels

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