AUD/USD Price Analysis: Corrects from multi-month peak, bullish potential intact

• AUD/USD meets with a fresh supply and snaps a two-day winning streak to a multi-month top.
• A goodish USD recovery and a softer risk tone turn out to be key factors weighing on the Aussie.
• The technical setup favours bulls and supports prospects for the emergence of some dip-buying.

The AUD/USD pair comes under some selling pressure on Tuesday and moves further away from its highest level since late August, around the 0.6945 area touched the previous day. Spot prices drop to a fresh daily low, around the 0.6860 region during the early North American session and for now, seem to have snapped a two-day winning streak.

A combination of factors assists the US Dollar to stage a goodish rebound from a seven-month low set on Monday, which, in turn, is seen weighing on the AUD/USD pair. A goodish pickup in the US Treasury bond yields, amid some repositioning trade ahead of Fed Chair Jerome Powell’s speech, acts as a tailwind for the buck. Apart from this, a generally weaker tone around the equity markets further benefits the greenback’s relative safe-haven status and contributes to driving flows away from the risk-sensitive Aussie.