AUD/USD extends slide to fresh 2021 low near 0.7460

  • AUD/USD came under renewed bearish pressure after testing 0.7500.
  • US Dollar Index climbed above 92.50 in the American session.
  • 10-year US Treasury bond yield turned positive on the day.

The AUD/USD pair staged a rebound earlier in the day but failed to hold above 0.7500 and reversed its direction. As of writing, the pair was trading at its lowest level of 2021 at 0.7465, losing 0.42% on a daily basis.

US Dollar Index turns north ahead of NFP

The USD’s market valuation remains the primary driver of AUD/USD’s movements. Although the US Dollar Index (DXY) edged slightly lower during the European trading hours, it regained its traction on the back of recovering US Treasury bond yields. At the moment, the benchmark 10-year US T-bond yield is up 0.6% on the day and the DXY is at its highest level since early April at 92.52, rising 0.2% on the day.

Meanwhile, the data from the US showed on Thursday that the Initial Jobless Claims fell to the lowest level since March 2020 at 364,000 in the week ending July 26. Additionally, the ISM Manufacturing PMI edged slightly lower to 60.6 in June and missed the market expectation of 61. Furthermore, the Prices Paid component of the PMI report surged to a new series high of 92.1.

On Friday, May Home Loans and Investment Lending for Homes from Australia will be looked upon for fresh impetus. More importantly, the US Bureau of Labor Statistics will publish the June hobs report.

Technical levels to watch for

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