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Australian dollar slips as US yields rebound and US data disappoints

AUD/USD was last at 0.7114, down 0.14%, after the US 30-year yield bounced back toward 5.25%.

Reported · Written up by our desk · Major Pairs

The Australian dollar weakened against the US dollar as US bond yields resumed their advance, pulling the AUD/USD rate down to 0.7114, a 0.14% decline, according to FXStreet.

FXStreet said the move came even after the US Treasury announced a long-end bond buyback program intended to cap elevated yields. While the US 30-year yield fell on the announcement to as low as 5.178% earlier in the day, it has since recovered to about 5.25%, and the US Dollar Index was up 0.07% at 99.83.

On the data front, FXStreet pointed to US Initial Jobless Claims for the week ending August 15 coming in at 206K, below both forecasts and the prior print. In Australia, S&P Global Manufacturing PMI stayed at 52 in August, while the S&P Global Services PMI eased from 53.6 to 52.9, with S&P Global Market Intelligence noting manufacturing saw its strongest new work since the start of the year but output slipped slightly, and services growth continued but at a softer pace.

Looking ahead, FXStreet said the US will release Flash PMIs, with expectations for the Manufacturing PMI to ease to 53.8 from 53.9 and the Services PMI to fall to 54.0 from 54.6. Technical levels highlighted by the outlet include the pair holding above an average near 0.6997, while overhead resistance is seen around 0.7300 to 0.7311 and near-term support sits near the 0.7116 area.

Latest closeDollar index 99.64 ▼0.3%

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