Forex
Home›Forex›Major Pairs›AUD/USD holds near 0.7220 as US yields lift the dollar
AUD/USD holds near 0.7220 as US yields lift the dollar
The move follows a jump in the 10-year US Treasury yield to 4.85% and comes as investors await US PPI on Thursday and CPI on Friday.
AUD/USD was steady around 0.7220 on Wednesday after previously touching a fresh four-month high near 0.7237, as the US dollar rebounded on higher Treasury yields, according to FXStreet.
The benchmark 10-year US Treasury yield rose to 4.85%, with the 30-year yield reaching 5.30%. FXStreet linked the yield increase to plans by the US Treasury to buy back $6 billion of longer-term government debt, three times the usual size, aiming to improve liquidity and support market functioning, though longer-term yields still moved higher after the announcement.
FXStreet added that the US Dollar Index, which had erased earlier losses, returned to around flat as higher yields made US fixed income more attractive. The AUD had earlier benefited from encouraging Chinese inflation data, with China’s CPI rising 0.4% in August after a 0.1% decline in July.
The upside for AUD/USD is still viewed as limited by risk aversion tied to escalating Middle East tensions and higher oil prices. FXStreet noted that attention now turns to the release of the US Producer Price Index on Thursday ahead of Friday’s US Consumer Price Index.
Latest closeDollar index 98.84 ▼0.3%