AUD/USD regained positive traction on Tuesday amid renewed USD selling. The risk-on mood was seen as a key factor weighing on the safe-haven USD. Rallying US bond yields extended some support to the USD and capped gains. The AUD/USD pair held on to its modest daily gains, albeit seemed struggling to build on the momentum. The pair was last seen trading around the 0.7710-15 region, up 0.45% for the day. The pair regained positive traction on Tuesday, snapping two consecutive days of the losing streak and recovered the overnight losses to near two-week lows. The prevalent upbeat market mood prompted some fresh selling around the safe-haven US dollar and was seen as one of the key factors that benefitted the perceived riskier Australian dollar. Against the backdrop of the optimism over the COVID-19 vaccine rollouts, the already stronger global risk sentiment got an additional boost from the increasing likelihood of more US fiscal stimulus. The market bets increased further after reports indicated that US Treasury Secretary nominee Janet Yellen will urge lawmakers to act big to a protracted downturn. Meanwhile, expectations of a larger government borrowing, along with the risk-on flow triggered a fresh leg up in the US Treasury bond yields. This, in turn, extended some support to the USD and kept a lid on any strong gains for the AUD/USD pair. Investors might also prefer to wait on the sidelines ahead of President-elect Joe Biden’s inaugural ceremony on Wednesday. This makes it prudent to wait for some strong follow-through buying before positioning for any further gains amid absent relevant market moving economic releases. That said, Yellen’s comments might influence the USD price dynamics. This, along with the broader market risk, might further contribute to produce some meaningful trading opportunities around the AUD/USD pair. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD holds steady near session tops, above 1.3600 mark FX Street 2 years AUD/USD regained positive traction on Tuesday amid renewed USD selling. The risk-on mood was seen as a key factor weighing on the safe-haven USD. Rallying US bond yields extended some support to the USD and capped gains. The AUD/USD pair held on to its modest daily gains, albeit seemed struggling to build on the momentum. The pair was last seen trading around the 0.7710-15 region, up 0.45% for the day. The pair regained positive traction on Tuesday, snapping two consecutive days of the losing streak and recovered the overnight losses to near two-week lows. The prevalent upbeat market mood prompted… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.