AUD/USD rebounds from weekly lows and prints fresh highs above 0.7150

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  • Australian dollar managed to rise back above the important technical level of 0.7150.
  • US dollar back under pressure, DXY drops below 93.30.

The AUD/USD pair bottomed during the Asian session at 0.7108 the lowest level since August 3 and then rebounded. After the beginning of the American session jumped to 0.7173 and as of writing, it is trading at 0.7165/70, holding onto daily gains, supported by a weaker US dollar.

The greenback turned to the downside after US data and despite higher US yields. The DXY peaked near 94.00 and bounced to the downside, losing the 93.50 area. At the same time, the 10-year yield rose to 0.686%, the highest since July 7.

Economic data from the US showed a higher-than-expected reading of US CPI. On Tuesday the PPI also came in above expectations. In Australia, attention turns to the employment report that will be released on Thursday at 01:30 GMT. The net change in employment is forecast to be positive by 40K in July.

“An upbeat reading could boost AUD/USD momentum, moreover considering the market is waiting for a poor outcome.  The market is now betting against the greenback, but these days, the dollar tends to appreciate during US trading hours, amid optimism about a US economic comeback, after US President Trump said he sees no reason why the country won’t growth 20% in Q3”, says Valeria Bednarik, Chief Analyst at FXStreet.

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