AUD Climbs to 0.6980, Faces Resistance at 0.6990 as US Yields Edge Higher

The Australian dollar advanced 0.3 % to trade around 0.6980 against the U.S. dollar during the European session, but has stalled just below the 0.6990 threshold. The currency remains the strongest performer against the Japanese yen, reflecting a risk‑on environment that has been buoyed by a recent pullback in U.S. Treasury yields.

S&P 500 futures are up 0.33 % near 7,800, signalling a broadly positive market mood. Meanwhile, 10‑year U.S. Treasury yields have risen 0.42 % to about 5.26 %, after a brief attempt to push past 5.36 % that was quickly reversed.

Market analysts note that the Australian dollar’s momentum is likely to be capped by the continued rise in U.S. yields, while geopolitical tensions—particularly the U.S. stance on Iran—continue to support higher oil prices, keeping the benchmark above $100 per barrel.

The next key event will be the release of September’s U.S. Consumer Price Index on Wednesday, which is expected to shape expectations for the Federal Reserve’s policy path. Participants largely anticipate a single rate hike this year.

From a technical perspective, AUD/USD is trading at 0.6978, below its 20‑period exponential moving average (EMA) of 0.7019. The pair’s Relative Strength Index (RSI) sits near 39, indicating weak momentum but not yet oversold. Resistance lies at the 20‑day EMA around 0.7019; a sustained break above this level would be required to shift the short‑term bias. With no clear support levels in sight, downside pressure remains a concern, keeping bears in control of the near‑term outlook.