AUD/USD plunges to near 0.7160 as DXY strengthens on firmer yields

• AUD/USD has slipped to near 0.7160 despite upbeat aussie GDP.
• Firmer US Treasury yields have infused fresh blood into the DXY.
• The DXY has touched the round-level resistance of 102.00.

The AUD/USD pair has witnessed a steep fall after a downside break of the crucial support at 0.7172. On a broader note, the asset has remained in a consolidation phase this week. The major has traded back and forth in a range of 0.7200-0.7149 after a bullish week. More downside looks visible if the asset drops below Tuesday’s low at 0.7149.

Aussie bulls have failed to capitalize on higher-than-expected Gross Domestic Product (GDP) numbers released in the Asian session. The Australian Bureau of Statistics reported the quarterly GDP numbers at 0.8% against the estimates of 0.7% and the prior print of 3.4%. While the annual figure landed at 3.3% vs. the expectation of 3% and the former figure of 4.2%.

Although the April figures have outperformed the forecasts, the economic data has displayed an impoverished performance in comparison with the former figures. A negative deviation in the GDP numbers has weakened the aussie bulls for a longer period.

Meanwhile, the US dollar index (DXY) is marching firmly towards Tuesday’s high at 102.17. Advancing chances of an extreme hawkish stance by the Federal Reserve (Fed) in its June monetary policy has strengthened the greenback basket. The DXY has refreshed its intraday high after hitting the round-level resistance of 102.00. Now, the DXY bulls will strive for an establishment above 102.00. Also, the advancing US Treasury yields have empowered the DXY. The 10-year US Treasury yields have climbed above 2.86%.