- AUD/USD is mildly bid at press time despite risk-off tone in the markets.
- Australian 10-year government yield hit a record low in Asia.
AUD/USD is currently trading at 0.6930, representing 0.10% gains on the day, amid risk-off tone in the global markets.
The Asian stocks are flashing red with the Shanghai Composite index currently reporting a 0.20% drop. Other major Asian indices like Japan’s Nikkei, Hong Kong’s Hang Seng and the futures on the S&P 500 index are also feeling the pull of gravity.
Further the yield on Australia’s 10-year government bond fell to a record low of 1.49% earlier today. The yield has essentially printed a low below the Reserve Bank of Australia’s cash rate of 1.50%.
Even so, the AUD sellers are not making their presence felt, possibly because the US treasury yields are also losing ground. For instance, the yield on the US 10-year treasury note is currently trading at 2.24%, the lowest level since September 2017.
Looking forward, the currency pair may come under pressure if the risk aversion worsens. Also, China’s Yuan is again losing altitude. The USD/CNH pair is currently trading at 6.9282, representing 0.10% gains on the day and the probability of a near-term rise to 7.00 would rise sharply if the pair confirms a bull flag breakout with a move above 6.9346, in which case the US Dollar will likely see a broad-based rally.
Pivot levels
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