FxWirePro:AUD/USD pauses 5-week bearish streak, Antipodeans buoyed as concerns about Omicron variant ebb
FxWirePro: AUD/USD holds marginal gains on improved risk sentiment, focus on US Durable Goods data for further impetus
AUD/USD chart - Trading View
AUD/USD was trading 0.29% higher on the day at 0.7276 at around 07:30 GMT.
The Australian dollar remains supported on improving risk-on mood in the markets.
Risk sentiment improved on Monday as Evergrande contagion fears recede. Markets hopeful that Beijing will contain Evergrande fallout.
AUD/USD remains technically bearish as long as price holds below 21-EMA resistance.
Price action is below daily Ichimoku cloud and major moving averages are trendline lower.
RSI is below the 50 mark and MACD is in the negative territory. ADX does not support any clear direction.
On the downside, the pair is hovering above 200-week MA support at 0.7212. Breach below will drag the pair lower.
Fed's latest hawkish shift saw bond yields climb to their highest since the start of July in anticipation of tighter U.S. monetary policy. The lift in yields underpin the U.S. dollar.
Focus now on U.S. fiscal policy with the House of Representatives due to vote on a $1 trillion infrastructure bill this week.
A September 30 deadline on funding federal agencies could force the second partial government shutdown in three years, which could weigh on the US dollar.