AUD/USD clocks three-week low

AUD/USD pair extended losses seen in early Asia to hit a three-week low of 0.7544 as rising bond yields across the globe reduce demand for high yielders – AUD and NZD.

Hawkish comments from Fed’s Evans are not helping the matters either. Meanwhile, news that China intends to restrict speculative funds flow in property market too is not a good new for the Aussie.

The currency pair was offered earlier today at 50-DMA despite widening of the Aussie-US 10-year bond yield spread. Given the thin economic calendar in US, the focus remains on the activity in the bond markets across the globe and oil and gold prices.

AUD/USD Technical Levels

Recovery in the bid tone could run into resistance at 0.7580 (pervious day’s low), above which the spot may target 0.7608 (50-DMA). A violation there would open doors for test of supply around 0.7626 (10-DMA) handle. On the other hand, breach of support at 0.7525 (50-DMA) could yield a drop to 0.7490 (Aug 31 low) under which sell-off could be extended to 200-DMA level of 0.7431.