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  • AUD/USD is posting small daily gains around 0.7750.
  • US Dollar Index drops below 91.80 during the American session.
  • 10-year US Treasury bond yield is down more than 2% on Monday.

The AUD/USD pair dropped toward the 0.7700 area during the Asian trading hours on Monday but managed to erase its daily losses in the second half of the day. As of writing, the pair was up 0.09% on a daily basis at 0.7709.

DXY continues to push lower

In the absence of significant macroeconomic data releases and fundamental drivers, the US Treasury bond yields’ movements continue to impact the greenback’s market valuation. With the benchmark 10-year US T-bond yield losing 2.15% on the day, the US Dollar Index (DXY), which rose above 92.00 earlier in the day, is down 0.16% at 91.78.  

The data from the US showed on Monday that the Chicago Fed National Activity Index dropped to -1.09 in February from 0.75, compared to analysts’ estimate of 0.21.

Meanwhile, the upbeat market mood at the start of the week, as reflected by decisive gains seen in Wall Street’s main indexes, is putting additional weight on the safe-haven USD’s shoulder. At the moment, the S&P 500 Index is up 0.87% and the Nasdaq Composite is rising 2.35%.

Later in the session,  San Francisco Federal Reserve President Mary Daly’s and Federal Reserve Vice Chair Randal Quarles’ speeches will be looked upon for fresh catalysts.

There won’t be any data releases featured in the Australian economic docket on Tuesday.

Technical levels to watch for