AUD/USD advances to fresh six-day highs near 0.7800
- AUD/USD started the new week on a firm footing.
- US Dollar Index remains depressed below 91.00 on Monday.
- Focus shifts to US Durable Goods Orders report.
After closing the previous week virtually unchanged, the AUD/USD pair gained traction during the Asian trading hours on Monday and climbed to its highest level since April 20 at 0.7797. As of writing, the pair was consolidating its daily gains around 0.7782, where it was up 0.5% on a daily basis.
USD valuation continues to drive AUD/USD movements
The US Dollar Index (DXY) lost 0.85% last week and registered its largest one-week percentage decline as the greenback struggled to find demand as a safe haven amid improving economic conditions. On Monday, the US Dollar Index fell to its lowest level since early March at 90.68 and helped AUD/USD preserve its bullish momentum.
Ahead of the American session, however, the 2% increase seen in the benchmark 10-year US T-bond yield allowed DXY to erase its losses, limiting AUD/USD's upside for the time being.
Later in the day, the US Census Bureau will release the Durable Goods Orders data for March, which is expected to rise to +2.5% from -1.2% in February.
In the meantime, the S&P 500 Futures are down 0.1% on the day, suggesting that the mood could turn cautious in the second half of the day and further support the USD.
Technical levels to watch for