Audusd Trades Lower Amid A Rise In Us Bond Yields

 Audusd Trades Lower Amid A Rise In Us Bond Yields

AUD/USD Trades Near 0.6580 Amid A Rise In US Bond Yields

Friday's trading session was not so fortunate for the ADU/USD as it turned lower toward the 0.6580 handle. According to analysts, the recent price action in AUD/USD is driven by rising US bond yields.

In simple words, the demand for the greenback is higher than the Australian Dollar (AUD). As a result, the AUD/USD is on the back foot with eyes toward the next support level located near 0.6575 and 0.6560.

Positive US Data Pushes AUD Lower

As per the latest data from UBLS, an increase of 0.4% in average hourly earnings was witnessed during November. The earlier reading was near 0.2%, while the market expectation was of 0.3%. In a sense, we can say that the data was bullish for the greenback.

In addition, the US NFP also turned higher from a 150K reading last month to near 199,000 during November. The actual reading was 10K higher than the forecast, which surprised most of the market players.

After the release of the NFP report, the bond yields also jumped, which served as a cushion for the US Dollar. Right now, the yield for the 2-Y bond is hovering at 4.70%, and the 5-Y bond yield is near 4.24%. Similarly, the 10-Y bond yields are near 4.25%, which is also a bullish level.

Looking forward, another important release in the form of US CPI is due in November. Considering the close relation between the interest rate and inflation in the USA, the CPI release will be closely watched.

Over all, the daily chart (D1) of AUD/USD shows mixed signals with the sudden rise of the US Dollar. The RSI indicator suggests that the buying pressure remains weak in the near term. However, the RSI indicator still prints values in the green territory, which means the buying pressure is still lingering.

The bigger picture is that bears appear to be in charge of the AUD/USD price action. But we can't ignore the location of the SMA lines, such as the 20, 100, and the 200. Based on the SMA (Simple Moving Average) analysis, the bigger trend of AUD/USD is still bullish despite the short-term weakness.

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