Mar 4, 2021 19:07 GMTFXStreet News
AUD/USD made a sharp U-turn in the late American session.
US Dollar Index rose to a fresh monthly high above 91.40.
10-year US Treasury bond yield shot higher after FOMC Chairman Powell’s remarks.
The AUD/USD pair came under strong bearish pressure in the late American session and lost more than 60 pips in the last hour. As of writing, the pair was down 0.45% on a daily basis at 0.7742.
DXY advances toward 90.50
The renewed USD strength seems to be weighing heavily on AUD/USD. While speaking at an event organized by the Wall Street Journal, FOMC Chairman Jerome Powell said that they would be concerned “by a persistent tightening of financial conditions broadly” and refrained from touching on the bond market turmoil.
Mar 2, 2021 18:12 GMTFXStreet News
AUD/USD clings to daily gains above 0.7800 on renewed USD weakness.
US Dollar Index drops below 91.00 as 10-year T-bond yield turns red.
Mixed macroeconomic data releases from US failed to trigger a market reaction.
The AUD/USD pair broke above 0.7800 during the European trading hours and stayed relatively quiet before starting to push higher in the American session. As of writing, the pair was trading at a fresh daily high of 0.7820, rising 0.66% on a daily basis.
DXY loses traction as T-bond yields edge lower
The renewed USD strength seems to be helping AUD/USD preserve its bullish momentum in the second half of the day. In the absence of significant macroeconomic data releases, US Treasury bond yields continue to impact the greenback’s market valuation. The US Dollar Index is currently losing 0.25% on the day at 90.82 and the benchmark 10-year US T-bond yield is down 1%.