AUD/USD extends recovery from two-year lows, rises above 0.6320

• US dollar prints fresh lows across the board as US yields decline.
• Gold, silver and stocks in Wall Street extend recovery.
• AUD/USD to hold intraday bullish bias while above 0.6300.

The AUD/USD turned positive for the day and printed a fresh daily high at 0.6329. The pair is rebounding from the lowest level since April 2020 it reached earlier on Tuesday at 0.6246.

The move higher during the American session is driven by a broad-based US dollar slide across the board. The greenback lost momentum amid a recovery in Treasuries and also on the back of an improvement in risk sentiment.

The US 10-year yield is under 3.90% after exceeding 4.00% hours ago. The Dow Jones is gaining 0.64% and the Nasdaq is off lows, down by 0.39%. Metals recovered with XAU/USD testing $1680 and silver hovering around $19.50.

Market participants await key US economic data: on Wednesday the Producer Price Index and FOMC minutes, and on Thursday the Consumer Price Index. Inflation figures will be watched closely as they will influence Fed rate hike expectations.

Not out of the woods yet

The AUD/USD will face the 20-Simple Moving Average in 4-hour charts at 0.6350. Above, the next resistance stands at 0.6385 and then 0.6430. A recovery above the last one would alleviate the bearish pressure.

On the flip side, now 0.6300 is the immediate support followed by 0.6280. A decline below would expose the recent low at the 0.6245 area.

Technical levels