AUD/USD remains on track to close little changed around 0.7370
- AUD/USD is clinging to modest daily gains on Thursday.
- US Dollar Index retreats below 92.50 during the American session.
- 10-year US Treasury bond yield is down more than 3%.
The AUD/USD pair struggled to make a decisive move in either direction on Thursday. After declining below 0.7350 in the early European session, the pair staged a rebound and rose toward 0.7300 but struggled to preserve its bullish momentum. As of writing, AUD/USD was up 0.1% on the day at 0.7371.
DXY looks to snap three-day winning streak
The renewed USD weakness amid slumping US Treasury bond yields seems to be helping AUD/USD to stay in the positive territory.
The US Dollar Index (DXY), which posted gains in the first three trading days of the week, is currently down 0.27% on a daily basis at 92.45. Earlier in the day, the data published by the US Department of Labor revealed that the Initial Jobless Claims declined to the lowest level since the beginning of the pandemic of 310,000 in the week ending September 4. Nevertheless, this data was largely ignored by market participants.
In the meantime, the weak demand seen in the 30-year US Treasury note auction triggered a sharp decline in the T-bond yields. Currently, the benchmark 10-year US T-bond yield is losing 3.8% at 1.29%, putting additional weight on the greenback.
Despite the DXY's poor performance, however, the risk-averse market environment is making it difficult for the AUD to find demand.
There won't be any high-tier macroeconomic data releases featured in the Australian economic docket on Friday and the USD's market valuation is likely to continue to drive AUD/USD's movements.
Technical levels to watch for