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  • AUD/USD remains on track to close second straight day in the red.
  • US Dollar Index climbed to fresh multi-month highs on Tuesday.
  • Wall Street’s main indexes trade in the negative territory.

The AUD/USD pair extended its daily slide during the American trading hours and touched a session low of 0.7589. As of writing, the pair was down 0.5% on a daily basis at 0.7592.

DXY posts decisive gains above 93.00

The broad-based USD strength continues to weigh on AUD/USD on Tuesday. The strong upsurge witnessed in the US Treasury bond yields provided a boost to the greenback earlier in the day. The US Dollar Index (DXY) advanced to its best level in nearly five months at 93.35 as the benchmark 10-year US T-bond yield reached its highest point in more than a year at 1.774%.

Although the 10-year US T-bond yield erased the majority of its daily gains in the late American session, the USD continued to stay resilient against its rivals by finding demand as a safe-haven in the risk-averse market environment. Reflecting the sour market mood, the S&P 500 is down 0.4% on Tuesday.

The only data from the US showed that the Conference Board’s Consumer Confidence Index jumped to its highest level since the beginning of the pandemic at 109.7 in March, compared to analysts’ estimate of 96.9. However, this upbeat reading failed to help the risk sentiment improve.

On Wednesday, February Private Sector Credit and Building Permits data will be featured in the Australian economic docket.

Technical levels to watch for