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  • 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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