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AUD/USD Weekly Forecast: Pressure mounts in the near-term, but bulls still has an ace up the sleeve

Following AUD/USD Weekly Forecast: Pressure mounts in the near-term, but bulls still has an ace up the sleeveANALYSIS | 3/12/2021 3:43:24 PM GMT The Reserve Bank of Australia took action to curb the yields rally. The US Federal Reserve is having a monetary policy meeting this week. AUD/USD could fall towards 0.7620 but the long-term bullish picture persists. The AUD/USD pair is has managed to post a modest advance this week,  recovering well above the 0.7700 threshold. The greenback strengthened on the back of soaring government bond yields, but in the case of AUD/USD, the stronger dollar was partially offset by Wall Street reaching all-time highs. The Dow Jones Industrial Average and the S&P both hit records on Thursday, after US President Joe Biden signed the $ 1.9 trillion stimulus bill into law, granting more easy money to markets.

Week Ahead: Rising Treasury Yields will make this an interesting FOMC decision - MarketPulse

Week Ahead: Rising Treasury Yields will make this an interesting FOMC decision March 12, 2021SharePrint The bond market seems determined to make this an interesting FOMC policy decision.  Treasury yields have been surging after the Biden administration passed the $1.9 trillion COVID relief bill and set a May 1 st goal of getting vaccines to all adults.  The Fed welcomes a steeper yield curve, but the current trajectory could be disruptive to the economic recovery.  Market participants want to know how quickly do yields need to rise to raise concerns of tighter conditions or trigger disorderly markets?  The taper tantrum might get priced in a lot sooner by Wall Street, but the Fed will patiently wait until economic indicators confirm the recovery remains much later in the year.

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