AUD/USD struggles to gather momentum, continues to fluctuate above 0.7600

• AUD/USD remains on track to close the day little changed.
• US Dollar Index clings to daily gains around 92.50.
• RBA’s Debelle says a rate hike is unlikely until 2024.

The AUD/USD pair fell to its lowest level in more than a month at 0.7584 on Wednesday but managed to erase its daily losses in the second half of the day. After rising to 0.7630 area and turning positive on the day, however, the pair failed to preserve its recovery momentum and was last seen posting small daily losses at 0.7614.

Rising US T-bond yields support USD on Wednesday

The USD’s market valuation remains the primary driver of AUD/USD mid-week. During the Asian trading hours, the risk-averse market environment provided a boost to the greenback and weighed on the pair. Although the improving market mood allowed the pair to stage a rebound, the broad-based USD strength capped the upside.

In the absence of significant macroeconomic data releases, the US Dollar Index (DXY) gained traction with the benchmark 10-year US Treasury bond yield turning positive on the day following a two-day slump. Currently, the DXY is up 18% on the day at 92.50.

Earlier in the day, Reserve  Bank of Australia’s (RBA) Deputy Governor  Guy Debelle said that they will not raise the policy rate until they see inflation  sustainably back in the 2-3% range and added that this is not expected to happen until 2024.

On the other hand, the US Census Bureau reported that Durable Goods Orders in February declined by 1.1%, compared to analysts’ estimate for an increase of 0.8%.

On Thursday, the US Bureau of Economic Analysis’ final estimate of the fourth-quarter GDP growth data and the weekly Initial Jobless Claims data from the US will be looked upon for fresh impetus.

Technical levels to watch for