- AUD/USD climbs due to traders’ speculations that the US Federal Reserve would shift dovish.
- US 10-year Treasury bond yield continues to edge lower, eyeing the 3.50% threshold and weighing on the USD.
- AUD/USD Price Analysis: A daily close above 0.6900 can exacerbate a rally to 0.7000.
The AUD/USD soars sharply above the 0.6900 figure on speculations that the US Federal Reserve (Fed) would pivot from tightening monetary conditions, so the US Dollar weakened. US Treasury yields are dropping toward the 3.50% region while global equities continue to rise. At the time of writing, the AUD/USD is trading at 0.6948, above its opening price by 1.11%.
Sentiment and traders pricing a less hawkish Fed bolstered the AUD/USD
Wall Street extends its gains on Monday, ahead of the first release of US earnings. Inflation expectations in the United States (US) revealed by a New York Fed survey showed that consumers for one-year-ahead inflation decelerated to 5% in December, on its lowest reading since July 2021. However, estimates for the three-year period were unchanged at 3%, while for a longer term, they edged 0.1% up to 2.4%.
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