AUD/USD clocks 6-week high ahead of China data & RBA’s Debelle speech

The American dollar extended the overnight sell-off in Asia, pushing the AUD/USD pair to a 6-week high of 0.8060. 

USD hurt by losses in the treasury yields

The 10-year treasury yield fell below 2.05% for the first time since the US elections. The yield fell more than 6 basis points [bps] to 2.034%. The yield on the 30-year long bond fell 6 basis points to 2.664%. The weakness in the yields weighed over the American dollar. 

The bid tone around the AUD/USD also improved in Asia on account of slightly less hawkish comments from Fed’s Dudley. The policymaker expects monetary policy to tighten gradually, but did not say that he expects another rate hike this year. 

Focus on China data and RBA’s Debelle speech

Aussie July home loans, due at 01:30 GMT, are seen rising 1%, compared the previous month’s print of 0.5%. China trade data is due at 2:00 GMT. A bigger trade surplus could boost Aussie. 

Reserve Bank of Australia Governor Philip Lowe will give a speech at the Bank of China Sydney Branch’s 75th Anniversary Celebration Dinner - 0830 GMT. The central bank chief may jawbone the rising Australian dollar. 

AUD/USD Technical Outlook

FXStreet Chief Analyst Valeria Bednarik writes-

“From a technical point of view, the pair seems poised to extend its advance, even beyond the so far yearly high of 0.8065, given that in the 4 hours chart, the pair found buying interest around a bullish 20 SMA, which advanced above the critical 0.7965 Fibonacci support, while in the same chart, technical indicators hold well above their mid-lines, now directionless. “ 

Support levels: 0.8000 0.7965 0.7935

Resistance levels: 0.8065 0.8100 0.8140