AUD/USD inter-markets: Headed for 2nd straight weekly loss, Yellen eyed

The AUD/USD pair is seen consolidating the downside so far this week, after having failed several attempts to sustain above 0.77 handle during the last week.

The Aussie stalled its two-day bearish move and jumped back on the bids this Thursday as oil and copper prices attempt a tepid-bounce after yesterday’s sharp sell-off, underpinning the resource-linked AUD.

While broad based US dollar selling in wake of positions adjustment ahead of the Jackson Hole Symposium, also collaborates to the renewed optimism seen behind the major. The DXY declines gradually to fresh session lows of 94.56, recording a -0.17% loss on the day.

However, the recovery looks extremely fragile as persisting cautious tone is expected to extend into Friday, with markets jittery amid a 3-day Fed Symposium that gets underway later today.

While Yellen’s speech due Friday will be closely heard for any hint on the Fed’s rate hike campaign this year. The risk-trends gauged by the VIX (CBOE Volatility Index), rallies for the third consecutive session and looks to test three-week tops reached at 14.01 a day before.

Moreover, the yield differential between 10-year treasury yields and 10-year Australian government bonds continue to remain in favour of the US dollar, further indicating next move higher in the US dollar against the OZ currency.