US Treasury

AUD/USD remains constructive after a sharp fall in the US Dollar following the US Treasury’s support signal for the long end of the bond market. The pair is consolidating above 0.7100, with technical traders watching 0.7130 as the immediate breakout area and 0.7153 as the next key resistance level.

AUD/USD remains supported after a sharp fall in the US dollar, with traders watching whether price can clear the 0.7130 area. The pair’s bullish structure is intact, although Australian labor market weakness may limit the Aussie’s relative appeal.

GBP/USD is consolidating above 1.3600 after a bullish breakout that lifted the pair to a new three-month high above 1.3630. Traders are watching whether the six-month high at 1.3658 gives way or whether support near 1.3552 and 1.3553 is retested.

The US dollar came under renewed pressure on August 20 as expanded Treasury buybacks helped drive longer dated yields lower. EUR/USD and GBP/USD pushed higher as traders weighed Federal Reserve inflation concerns against expectations for further action from the ECB and a mixed UK inflation picture.

Bitcoin is hovering near critical chart support around $62,850 while long term US borrowing costs climb to their highest level since 2001. Technical traders say a decisive breakdown could open the door to a move toward $45,235, even as the longer term debt narrative may eventually support BTC.

GBP/USD is pressing near the 1.3500 area after a short-term upswing, but the pair remains trapped inside a broad range that has dominated for well over one year. FXCOINZ market coverage shows traders are watching US Treasury involvement around the yen, resilient US yields and the 1.3500 level for clues on whether cable can extend higher or fade again.