Economy Forex News

AUD/USD retreats from 0.7520 as U.S. Treasury yields rise

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  • AUD/USD lost 30 pips in the last hour as US Treasury yields rose amid risk appetite in the market.
  • Widespread strength in the US dollar weighs on AUD/USD.
  • US consumer confidence rose more than economists expected, AUD/USD barely moved.

AUD/USD barely advanced during the U.S. session, up 0.08%, trading at 0.7497 at the time of writing. Earlier in the day, the pair fell to 0.7483, but bounced from daily lows to touch a daily high of 0.7524, and eventually settled at current levels.

AUD/USD

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As a result of strong US Q3 corporate earnings, close to 81% of S&P 500 companies reported earnings, exceeding expectations. Other factors, such as inflationary pressures and tightening monetary policy conditions, remain on the back burner.

In the last hour, however, rising U.S. Treasury yields have changed the tone for risk-sensitive currencies such as the Australian dollar. With the yield on the US 10-year Treasury rising by 0.07% to 1.636%, the AUD/USD pair has been unable to move above 0.7500. In addition, the US dollar index regains the 94.00 level, up 0.18%, at the time of publication..

Mixed US macroeconomic data ignored by AUD/USD traders

The U.S. economic docket showed the U.S. house price index for August reading (MoM) rose by 1%, below the expected 1.3%. Additionally, the S&P/Case-Shiller home price indexes (YoY) expanded 19.7% lower than expected.

U.S. new home sales rose by 0.8 million in September, exceeding analyst estimates of 0.76 million. In October, US consumer confidence rose to 113.8 from 108.3.

When US Treasury yields started to rise, the pair lost 30 pips, trading at current levels.

The RBA’s trimmed average CPI for the third quarter is expected to be 0.5%, while consumer prices will rise 0.8% during the same period.

Technical levels

OVERVIEW
Today’s Last Price 0.7506
Daily Rate 0.0015
Today’s Daily Rate % 0.20
Daily Open 0.7491

TRENDS
20 Daily SMA 0.7355
Daily SMA of 50 0.7321
100 Daily SMA 0.7398
200 Daily SMA 0.7562

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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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