AUD/USD Pair Surges to Highest Level Since June Amid US Dollar Sell-Off
The AUD/USD pair has been on a strong upward trajectory since June, reaching its highest level in over two months. The pair jumped to a high of 0.7170, up sharply from the June low of 0.6870. This rally coincided with the broader US dollar sell-off that happened as the public debt soared to a record high of $40 trillion.
The DXY Index fell to 98.56, its lowest level on May 11 this year, and 3.18% below the year-to-date high of 101.80. The US economy continues to face concerns about inflation and consumer confidence, with the Conference Board report showing a sharp decline in consumer confidence this month.
Australia's bond yields have also continued rising this year, with the 30-year rising to 5.60%, its highest level in over a decade. Despite a report showing that the Australian economy was softening, the AUD/USD pair rose even after losing over 15,000 jobs last month.
The key macro data to watch this week will be the US Personal Consumption Expenditures (PCE) report that comes out on Thursday. Fed Chair Kevin Warsh will also be in the spotlight at the Jackson Hole Symposium.