The AUD/USD pair broke above 0.7800 during the European trading hours and stayed relatively quiet before starting to push higher in the American session. As of writing, the pair was trading at a fresh daily high of 0.7820, rising 0.66% on a daily basis.
The renewed USD strength seems to be helping AUD/USD preserve its bullish momentum in the second half of the day. In the absence of significant macroeconomic data releases, US Treasury bond yields continue to impact the greenback’s market valuation. The US Dollar Index is currently losing 0.25% on the day at 90.82 and the benchmark 10-year US T-bond yield is down 1%.
Earlier in the session, the data from the US showed that the IBD/TIPP Economic Optimism Index improved to 55.4 in March from 51.9 in February but failed to trigger a meaningful market reaction. On a negative note, the ISM-NY Business Conditions Index fell to 35.5 in February from 51.2.
On the other hand, the Reserve Bank of Australia (RBA) offered no surprises following its latest monetary policy meeting. The RBA left its policy rate unchanged at 0.1% and repeated that it’s prepared to make adjustments to its asset purchases if needed.
On Wednesday, the Commonwealth Bank Services PMI and the AiG Performance of Construction Index will be featured in the Australian economic docket.