- AUD/USD has backed off from the two-week highs possibly due to an uptick in the treasury yields.
- The pair has retraced 50 percent of the drop from the Aug. 28 high of 0.7362.
Currently, the AUD/USD pair is trading at 0.7216, having clocked a two-week high of 0.7234 earlier today.
The currency posted solid gains on Tuesday, despite escalating US-China trade tensions and rising treasury yields, likely due to a 3 percent rise in NY copper and recovery in Chinese yuan.
However, as of writing, the focus seems to have shifted to a rise in the 10-year treasury yield to a four-month high of 3.06 percent.
Looking forward, the AUD could find acceptance above 0.7224 (50% Fib R of 0.7362/0.7085) if the CNY prints gains and the global equities remain bid.
AUD/USD Technical Levels
Resistance: 0.7238 (Aug. 24 low), 0.7256 (61.8% Fib R of 0.7362/0.7085), 0.7307 (50-day moving average)
Support: 0.7191 (5-day moving average), 0.7142 (Sept. 17 low), 0.71 (psychological level)
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