AUD/USD weakens as higher Treasury yields lend some support to the dollar
Treasury yields are sharply higher across the curve and that is helping to see the dollar gain some ground against a couple of major currencies on the day.
The move higher in yields isn't too synonymous with Australian yields only up by ~3 bps across the curve (US yields are up by ~6 bps). That is lending to some yields differential play here, which is a key driver in influencing AUD/USD price action over the past two years.
Back to the pair, price is now slipping back below the key hourly moving averages (red and blue lines) and that will put sellers back in near-term control.
However, price action has been largely consolidating between 0.6740-0.6800 over the past few sessions that it is hard to really label this a significant break for now.
Until there is enough conviction for buyers or sellers to start threatening bigger technical levels, there isn't much of a directional trade to chase in the pair for the time being.
