- The post-RBA slide to session lows turned out to be short-lived.
- Sliding US bond yields weigh on the USD and remained supportive.
- This week’s US macro data eyed for a fresh directional impetus.
The AUD/USD pair held on to its daily gains through the early European session and is currently placed at the top end of its daily trading range, around the 0.6985 region.
After yesterday’s sharp intraday pullback from near two-month tops, the pair managed to regain some positive traction and the post-RBA dip to an intraday low level of 0.6957 also turned out to be short-lived.
As was widely expected, the Australian central bank lowered the benchmark interest rate by 25bps points to a record low of 1.0% but in absence of any fresh dovish signal, traders refrained from placing fresh bearish bets.
On the other hand, the US Dollar held on the defensive amid a fresh leg of a downfall in the US Treasury bond yields and extended some additional support amid the latest optimism over a US-China trade war truce.
It, however, remains to be seen if the pair is able to capitalize on the up-move or meets with some fresh supply at higher levels as the focus now shifts to this week’s important US macro data for a fresh directional impetus.
Friday’s closely watched US monthly jobs report – NFP, will influence Fed rate cut expectations and influence the near-term USD price dynamics, helping investors to determine the pair’s near-term trajectory.
Technical levels to watch
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