Products You May Like
- AUD/USD extended the correction above 0.7650, with eyes on 0.7700.
- RBA stood pat, the DXY resumed declines alongside the Treasury yields.
- Stronger US jobs data failed to impress, as focus shifts to the Fed minutes.
AUD/USD is consolidating near ten-day highs above 0.7650, eyeing a test of the 0.7700 barrier, as the US dollar remains vulnerable amid a three-day sell-off in the Treasury yields.
The aussie picked up fresh bids in the mid-American trading and rallied as high as 0.7669, as the downtrend in the US dollar resumed after the 10-year rates on the markets tumbled below 1.70% level once again.
Despite a negative close on Wall Street indices, the higher-yielding aussie managed to hold onto its intraday gains. The International Monetary Fund’s (IMF) upward revision to the global growth forecast for the second time in three months amid covid vaccine optimism partly aided the rally in the major.
Meanwhile, upbeat US JOLTS job opening data failed to offer any respite to the dollar bulls, as the Treasuries continued to draw bids ahead of the FOMC minutes, keeping the bearish pressure intact on the yields and the greenback.
The Reserve Bank of Australia (RBA) announced no changes to its monetary policy decision earlier in the day, maintaining its pledged to keep the accommodative policy until its employment and inflation goals are achieved.
Heading into Wednesday, the economic calendar remains sparse for Asia and therefore, the focus shifts to the US docket, with the goods trade balance and the FOMC minutes on the cards. In the meantime, the dynamics in the dollar and yields will continue to remain the main market motors.