AUD/USD slides to session lows, erases a major part of Tuesday’s positive move
- Recovering US bond yields underpinned the USD demand and exerted some fresh pressure.
- Positive trade-related developments did little to lend any support to the China-proxy Aussie.
- Traders now look forward to speeches by influential FOMC members for a fresh impetus.
The AUD/USD pair extended its intraday downfall and dropped to fresh daily lows, around the 0.6775 region in the last hour, eroding a major part of the previous session's positive move.
Despite encouraging trade-related developments, the pair met with some fresh supply on Wednesday and snapped two consecutive days of a modest uptick amid renewed US Dollar buying interest. As investors looked past Tuesday's disappointing release of the Conference Board's Consumer Confidence Index, a pickup in the US Treasury bond yields underpinned the USD and exerted some pressure on the major.
Renewed trade optimism fails to impress bulls
Meanwhile, bulls seemed rather unimpressed by the overnight report that an impeachment inquiry will be started against US President Donald Trump. Even the latest trade headlines, wherein China was said to plan to buy more US farm products as a goodwill gesture ahead of the upcoming high-level trade talks in early-October, did little to lend any support or ease pressure around the China-proxy Australian Dollar.
Moving ahead, there isn’t any major market-moving US economic data due for release on Wednesday and hence, traders might now take cues from scheduled speeches by influential FOMC members – Chicago Fed President Charles Evans and Kansas City Fed President Esther George – in order to grab some short-term opportunities.
Technical levels to watch