Economy Forex News

AUD/USD intraday rally stalls before 0.7500

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  • Risk appetite helped AUD perceived as riskier to gain traction on Monday.
  • Rising US bond yields revived USD demand and limited any significant gains.

AUD/USD maintained its offered tone during the early US session. And additionally was trading around the 0.7485-90 zone, up 0.35% on the day.

AUD/USD

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The pair attracted fresh buying

Despite the prevailing risk appetite environment in the markets. Which favors the perceived riskier Aussie, the pair attracted fresh buying on the first day of a new trading week. However, a good recovery in the US dollar did not help the AUD/USD pair capitalize on its move. Or to find acceptance above the key psychological level of 0.7500.

The dollar received some support from rising U.S Treasury yields and posted a solid rebound from near one-month lows touched earlier on Monday. The yield on the 10-year U.S. government bond remained above 1.65%. Indicating that the Fed may tighten policy sooner than expected.

Chairman Jerome Powell reaffirmed Friday that the U.S. central bank is on track to begin winding down its massive stimulus from the pandemic era. A possible rate hike in 2022 factored into markets amid concerns that the recent rally in commodity prices will spark inflation.

In the absence of relevant economic releases in the US market, this was a key factor holding up any significant gains for the AUD/USD pair. Investors also abstained from aggressive bets, choosing to stay on the sidelines ahead of this week’s key macroeconomic data from Australia and the US.

Australia’s quarterly consumer inflation figures will release on Wednesday.

Australia’s quarterly consumer inflation figures will release on Wednesday. This, along with the advanced US Q3 GDP report on Thursday, will help determine the next leg of a directional move for the AUD/USD pair. In the meantime, USD price dynamics and general market sentiment will be taken into account for some trading momentum.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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