The Australian dollar is performing under pressure for the last few trading session after CNH, which is an offshore RMB currency traded outside of Mainland China, weakened against the dollar. China’s 10-year government bond yields dropped as compared to US Treasury yields for the first time in 12 years. The Australian dollar price movement is directly co-related to the CNH. Currently, the AUD/USD Is testing the major support level at the 0.7400 mark after a 0.60 decline on Monday. Meanwhile, the dollar index which tracks the value of the U.S. dollar against major currencies, edged up 0.14% to 100.056, further strengthening the demand for the dollar. The near-term technical outlook for AUD/USD is bearish as it is trading well below the key average prices.
