During early Tuesday the Aussie took the bids to an intraday high of 0.7468. The US Dollar Index dropped 0.08% intraday to 92.13 by the press time, refreshing daily low, as market sentiment improves, also underpinning the demand for riskier assets like commodities and Antipodeans including the AUD/USD prices.
The US Dollar contrasts the US 10-year Treasury yields, up 1.7 basis points (bps) to 1.339% as well as the slightly bid S&P 500 Futures as markets in the US and Canada brace for weekly opening after the Labor Day holiday on Monday.
There were no new virus cases in Australia and hopes of the Reserve Bank of Australia’s (RBA) disruption in tapering also favor the AUDUSD buyers of late.
However, the pre-RBA caution and fears of a spike in the virus-led hospitalizations in Australia challenge the pair buyers. Amid these plays, the Commonwealth Bank of Australia (CBA) said, “The near-term outlook is bleak, as extended lockdowns in NSW and Victoria cripple economic activity.”
Looking forward, the greenback moves and risk appetite could amuse Aussie traders ahead of the RBA decision. Although markets already preparing for a delayed taper of the weekly bond purchase by the RBA, any surprises will be reacted with higher volume.
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