AUD/USD extends slide to fresh daily low below 0.7350


  • AUD/USD continues to push lower in the American session.
  • US Dollar Index stays in the positive territory near 93.00.
  • Rising US Treasury bond yields help the greenback gather strength.

The AUD/USD pair came under renewed bearish pressure during the American trading hours on Thursday and dropped to a daily low of 0.7335. As of writing, the pair was down 0.45% on the day at 0.7338.

Rising US T-bond yields support USD

Earlier in the day, the data from the US revealed that the Producer Price Index (PPI) in July rose to 7.8% from 7.3% in June. Additionally, the US Department of Labor reported that Initial Jobless Claims declined by 12,000 to 375,000 in the week ending August 7. 

Although these readings failed to trigger a noticeable market reaction, the greenback preserves its strength against its major rivals on the back of rising US treasury bond yields. At the moment, the benchmark 10-year US T-bond yield is up nearly 2% on the day at 1.356% and the US Dollar Index is up 0.1% 92.99.

In the meantime, Wall Street’s main indexes are edging slightly lower after the opening bell, not allowing AUD/USD to stage a rebound.

There won’t be any high-tier macroeconomic data releases featured in the Australian economic docket on Friday and the USD’s market valuation is likely to continue to drive AUD/USD’s movements ahead of the weekend.

Technical levels to watch for

 



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