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  • AUD/USD bounces as S&P 500 futures rise amid retreating Treasury yields.
  • Upbeat Australian NAB Survey, vaccine progress and US-China news boost the AUD.
  • All eyes remain on the Treasury yields dynamics amid a sparse US docket.

AUD/USD challenges highs near the 0.7670 region, having staged a strong comeback from a dip to 0.7621.

The aussie tracked the turnaround in the risk-sentiment, which was reflected by the rebound in the Asian equities alongside the US stock futures. The S&P 500 futures jump back to 3,850 levels, up 0.70% on the day.

The return of risk appetite weighed on the haven demand for the US dollar, aiding the renewed uptick in the major. The market mood got a big lift after the Chinese government reportedly intervened by buying stocks to arrest the plunge in the domestic indices.

Also, the retreat in the US Treasury yields lifted the demand for the aussie as an alternative higher-yielding currency. Additionally, the Australian PM Scott Morrison’s upbeat remarks on the country’s covid vaccine drive combined with the  upbeat NAB Business survey also bode well for the aussie dollar.

The renewed optimism on the US-China trade front also collaborated with the aussie’s rebound, especially after Reuters reported, citing sources, three ships carrying ethanol were heading to China from the US Gulf Coast. This suggested rising fuel exports from the US to the country.

Meanwhile, markets shrugged-off the sharp sell-off in copper prices as well in the Chinese iron-ore prices, as the sentiment around the US bond markets continued to play a pivotal role.

Looking ahead, in absence of the first-tier US macroeconomic news, the pair will remain at the mercy of the yields and US dollar price action.

AUD/USD: Technical outlook

“the bullish breakout doesn’t guarantee the AUD/USD run-up as a downward sloping trend line from February 25 and 200-HMA, respectively around 0.7720 and 0.7775, will challenge the pair’s further upside. Alternatively, pullback moves may seesaw around 0.7620 support ahead of highlighting the 0.7600 threshold for sellers,” FXStreet’s Anil Panchal notes.

AUD/USD: Additional levels