AUD/USD dips to lowest since June 30

AUD/USD extended Thursday’s losses to 0.7387 levels in Asia; its lowest since June 30 as the rise in the treasury yields strengthened the appeal of the US dollars.

10-yr Treasury yield at one-year high

At 2.322%, the 10-year treasury yield in the US is trading at the highest level since December 2015. Meanwhile, December Fed rate hike bets as represented by the CME Fed funds futures rose to 98%.

Consequently, the US dollar is ruling the roost again. At the time of writing, the pair was trading around 0.74 handle and was down for the third consecutive session.

AUD/USD Technical Levels

A move back above 0.7420 (July 27 low) could yield a revisit to 0.7450 (38.2% of 0.6827-0.7835), above which the psychological level of 0.75 could be put to test. On the other hand, a breakdown of support at 0.7387 (today’s low) would open doors for a drop further to 0.7331 (50% of 0.6827-0.7835) and 0.73 (zero figure).