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  • AUD/USD lost its traction after edging higher in Asian session.
  • US Dollar Index clings to modest daily gains above 93.00.
  • Surging US Treasury bond yields provide a boost to greenback.

After closing the first trading day of the week with small losses, the AUD/USD pair staged a rebound during the Asian session and touched a weekly high of 0.7663. However, the renewed USD strength forced the pair to reverse its course. As of writing, AUD/USD was virtually unchanged on a daily basis at 0.7630.

USD gathers strength on surging US T-bond yields

Earlier in the day, the upbeat market mood, as reflected by modest gains posted by the major Asian equity indexes, helped the AUD find demand.

On the other hand, the US Treasury bond yields’ performance continues to impact the USD’s market valuation in the absence of significant fundamental drivers. On Monday, the 10-year US Treasury bond yield gained more than 2% and preserved its bullish momentum to touch its highest level since January 2020 at 1.774%. Currently, the 10-year US T-bond yield is up 3.12% on the day at 1.769 and the US Dollar Index is trading at fresh multi-month highs at 93.21, rising 0.2%.

Later in the session, the Conference Board’s Consumer Confidence Index data from the US will be looked upon for fresh impetus. Additionally, the US Federal Reserve’s Vice Chairman for Supervision, Randal Quarles, and Federal Reserve Bank of New York President John Williams will be delivering speeches.

Technical levels to watch for