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Australian Dollar Risks Wilting if Fed Remains Sanguine on Treasury Yields

Australian Dollar Risks Wilting if Fed Remains Sanguine on Treasury Yields 2021-03-13 00:00:00 Daniel Dubrovsky, Strategist Australian Dollar Fundamental Forecast: Neutral All eyes turn to Fed as markets eye their take on bond market Aussie may focus on Treasury yields, looking past jobs data The sentiment-linked Australian Dollar spent most of last week aiming higher following a fairly choppy period against the US Dollar. All eyes were and will likely continue being on elevated longer-term Treasury yields, where rates of return on the 10-year appear competitive compared to the dividend yield from the S&P 500. As bonds stabilized following softer core US CPI data, Wall Street regained upside momentum, along with AUD.

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