AUD/USD bulls firming at the 61.8% ratio
- AUD/USD bulls holding the fort at the 61.8% ratio.
- The US dollar has dipped on weaker US yields but should it firm, AUD/USD bears will look to 30 Aug highs near 0.7320.
AUD/USD is trading at 0.7365 at the time of writing, trapped technically as it attempts to move away from trendline support.
The US dollar has been a supporting factor for the Aussie, sliding again on Thursday as Treasury yields fell after the U.S. government saw strong demand for a sale of 30-year bonds.
At the same time, the single currency picked up a bid following the European Central Bank meeting/
It said it would trim emergency bond purchases over the coming quarter.
Against a basket of peers, the dollar as measured by the DXY index remains in a corrective phase following the drop last Friday that marked a one-month low for the greenback.
The dollar index dropped to 92.38 up from the one-month low of 91.94 on Friday.
With the ECB now out of the way, the markets are focussed back on the Federal Reserve.
Chicago Federal Reserve President Charles Evans on Thursday said the US economy is "not out of the woods yet," when addressing the prospects of a taper from the Fed.
Evans said while there is strong economic growth and the promise of vaccines, challenges remain, including supply chain and labour market bottlenecks.
The prior day, officials had been more hawkish, however, although a taper announcement is not expected at this meeting around in September.
Meanwhile, US data on Thursday showed that the number of Americans filing new claims for jobless benefits fell last week to the lowest level in nearly 18 months.
Meanwhile, ''Australia has the potential for high vaccination rates which would boost both Gross Domestic Product and the Aussie,'' analysts at Westpac argued.
AUD/USD technical analysis
The price is being supported at the 61.8% ratio and would be expected to travel north if demand kicks in from here.
There are prospects of a fresh daily high.
However, should the US dollar find its form, the Aug 30 highs 0.7320 will be eyed as a potential downside target.
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