- AUD/USD continues from Tuesday’s gains to trade near multi-year highs
- USD struggles in a pro-risk market mood
- The US economic docket features ADP Employment Change and Services PMI
The AUD/USD closed up yesterday and was seen trading up today by 0.82 Percent, at 0.7220.
Earlier, Commonwealth Bank’s Composite PMI showed 57.8 in July’s final reading and pointed towards the strong pace of expansion in the private sector’s economic activity; this indication along with the surge in Investment Lending for Homes in June by 8.1 Percent helped the AUD to further its gains. The latter had recorded a disappointing decline of 15.6 Percent in May.
The US dollar index is trading weak down 0.38 Percent at 92.90 ahead of the ADP Employment Change and Services PMI. The 4.6 Percent rebound in the 10-year US Treasury bond yield, after an 8 Percent decline on Tuesday, is lending support to the greenback. If the T-bond return keeps climbing post the US data, it could limit the AUD/USD pair’s gains.
In the absence of any further data releases today or tomorrow in the Australian economic calendar, the action on the US dollar will determine the AUD/USD market swings.