The AUD / USD was just above 0.7830, not far from its session highs, which had previously hit 0.7847. The Aussie moved away from its lows at 0.7804 as the US dollar lost ground across the board due to declining US yields. The yield on ten-year US government bonds fell back from highs to the beginning of the week to 2.87 percent.
The Federal Reserve today released another document, the Monetary Policy Report, which pointed to gradual rate hikes. The quarterly report will serve as the basis for Fed Chairman Jerome Powell for the pre-US Congress hearing on February 27.
Some FOMC members had expressed themselves in the early American business, but monetary policy was only a marginal issue. The dovish members remained in their position and the hawkish members stuck to their views.
The US dollar follows bond yields and the AUD / USD shows a close correlation with the stock markets. The soft rise in US equities also supported AUD / USD.