AUD/USD struggles near weekly lows, just above mid-0.6800s
- Dovish sounding RBA monetary policy statement exerted some fresh pressure on Friday.
- The USD stood tall near multi-week tops amid the ongoing upsurge in the US bond yields.
- Softer risk tone further collaborated towards driving flows away from riskier currencies.
The AUD/USD pair maintained it’s heavily offered tone through the early North-American session and is currently placed near the lower end of its weekly trading range, around the 0.6860 region.
The pair failed to capitalize on the previous session's intraday positive move and met with some fresh supply on the last day of the new trading week in reaction to the RBA's dovish sounding Statement of Monetary Policy (SoMP).
Weighed down by a combination of negative forces
The pair was further pressurized by some renewed US Dollar buying interest. As investors digested Thursday's mixed trade-related headlines, a fresh leg of an upsurge in the US Treasury bond yields underpinned the USD demand.
It is worth recalling that officials on Thursday said that China and US have agreed to roll back tariffs in a "phase one" trade deal, while other reports suggested that the matter faced fierce internal opposition in the White House.
Meanwhile, a slightly softer risk tone, as depicted by a cautious mood around equity markets, further collaborated towards driving flows away from perceived riskier currencies – including the Australian Dollar.
Moving ahead, Friday's US economic docket – highlighting the release of Prelim UoM Consumer Sentiment Index – might influence the price action and help traders grab some short-term opportunities.
Technical levels to watch