AUD/USD looks to extend losses below 0.7320 on USD strength

• AUD/USD continues to slide down following the previous session’s downside momentum.
• The Australian dollar losses against the greenback on the recent COVID-19 outbreak.
• Higher US Treasury yields underpin the demand for the US dollar.

The appreciative move in the US dollar keeps AUD/USD on the lower edge of the trade. The pair opened higher but failed to preserve the momentum.

At the time of writing, AUD/USD is trading at 0.7329, down 0.05% for the day.

The US 10-year Treasury yields edged higher at 1.32% with 0.39% gains after the US Job openings rose to a record 10.1 million in June from a revised 9.5 million in the prior month.

The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals,  moved in tandem with the bond market and traded near its two-week high.

Meanwhile, Boston Fed President EricRosengren said that the central bank should talk about tapering as soon as September. Atalanta Fed President Raphael Bostic also sound similar as he said that inflation already achieved the Fed’s threshold to start a discussion about a reduction in the bond purchase program.

In the latest development,  US Senate inched closer to pass a $1 trillion bipartisan infrastructure bill on Tuesday. The buying interest in the US dollar weighs on the risker assets like Aussie.

On the other hand, Aussie lost its grounds as investors assessed the impact of extended lockdown in the country and lower commodity prices. 

Iron ore prices plunged more than 5% on the prospects of improving supply and weakening Chinese demand as per Reuters.

It is worth noting that, S&P Futures were trading at $4,425, down 0.01% for the day.

As for now, traders await the Australian HIA New Home Sales data, US Nonfarm Productivity and Unit Labor Costs to trade fresh trading impetus.

AUD/USD additional levels