AUD/USD rises further to fresh three-week highs at the 0.7730 zone
- Australian dollar among top performers on risk appetite.
- US dollar falls across the board even as US yields rise.
The AUD/USD rose further boosted by a decline of the US dollar and a positive tone across financial markets. The pair hit at 0.7730, the highest level since March 23. It remains near the top, with the bullish momentum intact about to post the first daily close well above the 20-day simple moving average since early March.
DXY down even as US yields
The DXY is falling 0.15% on Wednesday as it stands at 91.66, the lowest since March 21. The dollar has been unable to benefit from a rebound in US yields. The 10-year gains 1.55% and climbed to 1.64%. The improvement in risk sentiment boosted currencies like the AUD, NZD, and European majors.
The risk-on mood also is boosting crude oil that gains more than 4%. Metals are being unable to profit. Gold drops 0.70%, affected by the rise in yields.
AUD/USD firm at higher levels
Technical factors are also driving the rally of AUD/USD on Wednesday. The price broke a range of almost two weeks by rising above the 0.7660/80 barrier. It also surpassed the 20 and 55-day moving averages. The recovery took place after the aussie managed to hold above the 0.7550 key support area.
The short-term outlook now favors the upside in AUD/USD. A retreat under 0.7660 would alleviate the bullish pressure. A break under 0.7560 should clear the way to further losses.