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AUD/USD fails to push higher above 0.76 as greeback stages a modest recovery

  • DXY recovers from 3-month lows, remains below 0.93.
  • Aussie remains on the back foot amid commodity weakness.
  • Speeches from FOMC members will be followed later in the session.

The AUD/USD pair, which touched its highest level in nearly two weeks at 0.7644 earlier in the day, reversed course in the last hour and retraced its daily gains. At the moment, the pair is trading at 0.7615, virtually unchanged on the day.

US T-bond yields help buck gain traction

The pair's price action on Monday seems to be driven by the US Dollar Index's fluctuations. After plummeting to its worst level since late September at 92.43, the US Dollar Index started to erase its losses and was last seen at 92.62, losing 0.1% on the day. An improving market sentiment seems to be helping the buck in the early NA session. The decreasing demand for the safer US Treasury-bonds is lifting their yields higher with the 10-year reference turning positive at 2.345%.

Moreover, falling crude oil prices on Monday seems to be weighing on commodities and hurting the commodity-linked currencies such as the CAD, the AUD, and the NZD. There are no significant macroeconomic data releases in the remainder of the day, and the DXY action is likely to impact the pair. Ahead in the session, Minneapolis Fed President Neel Kashkari's and New York Fed President William Dudley's speeches will be looked upon for fresh impetus.

Technical outlook

The pair could encounter the immediate support at 0.7590 (daily low) ahead of 0.7500 (psychological level) and 0.7420 (Jun. 5 low). On the upside, resistances could be seen at 0.7645 (daily high) 0.7710 (200-DMA) and 0.7780 (Oct. 25 high)ç

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