AUD/USD bid near 0.7270 despite the uptick in US yields

• AUD/USD is looking to extend its three-day winning run. 
• Iron ore rally oveshadows uptick in US yields, keeps AUD bid. 

AUD/USD is maintaining its recent upward momentum despite the US bond yields rising in the greenback-positive manner. 

At press time, the currency pair is better bid near 0.7270, having printed gains for the third consecutive day on Thursday. Meanwhile, the yield on the US 10-year Treasury note is trading at 2-½ month highs near 0.78%, having increased by 10 basis points to 0.75% on Thursday. 

Uptick in US yields usually draws bids for the American dollar. However, the AUD/USD pair is currently showing resilience, possibly tracking iron ore’s rally to 6-years highs on Thursday. Iron ore, one of Australia’s top exports, has risen by over 30% this year on hopes of recovery in China, the world’s second-largest economy and biggest importer of commodities. 

Also, the Federal Reserve’s latest decision to adopt a more relaxed inflation policy may be keeping the dollar under pressure. Fed’s chairman Powell, while speaking at the Jackson Hole event on Thursday. Said the central bank will now be more willing to allow inflation to rise above the 2% inflation target before raising interest rates. 

However, big gains in AUD/USD may remain if China’s latest decision to ban imports of beef from an Australian firm elicits a tit-for-tat reaction from Canberra. 

Technical levels