AUD/USD Falls as US Yield Surge Pressures Risk-Sensitive Currencies Against US Dollar

Friday's Asia-Pacific OutlookThe risk-sensitive Australian Dollar may close out the week on a low note after dropping sharply versus the US Dollar overnight. The 5-year US yield briefly rose above 3% for the first time since November 2018. The Aussie Dollar may move lower into the weekend if traders continue to ditch US government bonds. Gold prices were another victim of Treasury rates, with the move in nominal yields lagging against its inflation-indexed counterparts. Silver prices fell more than 2%, while gold prices moved nearly 0.5% lower. The Chinese Yuan dropped again versus the US Dollar, extending its sharp slide that began earlier this week. The Japanese Yen resumed its fall against the USD as well, with USD/JPY rising nearly 0.5% into APAC trading.