AUD/USD Experiences Downward Bias Despite Risks

The Australian dollar drops as the Wall Street session approaches the end, down BY 0.14%. The US 10-year Treasury yield has reclaimed the 1.40% threshold, underpinning the US dollar.

During the New York session, the AUD/USD edges lower, trading at 0.7111. The market sentiment remains downbeat because of the Omicron outbreak worldwide.

The UK and some European countries re-impose social restrictions as health government offices seek to contain the fourth wave.

Meanwhile, the US dollar Index recovers some of its losses, almost flat at 96.55, as US Treasury yields with the 10-year benchmark note, reclaim the 1.40% threshold, up to two basis points, sitting at 1.423%.

An absent economic docket leaves the AUD/USD pair at the mercy of market sentiment and USD’s dynamics, including political domestic developments and demand for US Treasuries.

The AUD/USD daily chart depicts that the pair has a downward bias. The double-top formed in the month, still in play as long as the 0.7186 December swing high is decisively broken to the upside.

Despite Australian dollar weakness across the board, Monday’s price action pierced the neckline around the 14 December swing low at 0.7090. However, it failed to gain follow-through, pushing the AUD/USD around 0.7111.