AUD/USD tests Monday’s low amid higher treasury yields & mixed data

The AUD/USD pair extended its overnight retreat from above 0.76 handle and came under fresh selling pressure in the last hour, as the bulls were left unimpressed by mixed Australian datasets.

AUD/USD finds support from higher oil

Currently, the AUD/USD pair trades -0.38% lower near fresh session lows of 0.7575, flirting with Monday’s low reached at 0.7576. The Aussie remains heavily offered this session, largely on the back of rising US treasury yield across the curve, amid persisting risk-on market profile backed by higher oil prices. Hence, the US dollar tracks the treasury yields higher and weighs heavily on all its major counterparts.

However, the downside appears capped as yesterday’s solid rally across the commodities’ space continues to lend support to the resource-linked AUD. While mixed Australian home loans and business confidence data fail to provide any respite to the bulls.

Focus now shifts towards the US NFIB small business index and LMCI data lined up for release from a relatively light US docket today.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7598 (50-DMA) above which gains could be extended to the next hurdle located 0.7617/20 (10 & 20-DMA) and 0.7693 (Oct 4 high). On the flip side, the immediate support located at 0.7567 (100-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7500/0.7494 (key support/ 200-DMA) and below that at 0.7450 (psychological levels).