AUD/USD consolidates below 0.6500 as rebounding US bond yields revive USD demand

AUD/USD struggles to find acceptance above 0.6500 amid the emergence of some USD buying.

Bets for slower Fed rate cuts trigger a fresh leg up in the US bond yields and underpin the USD.

Geopolitical risks and trade war fears further benefit the Greenback and weigh on the Aussie.

The AUD/USD pair attracts some sellers following an intraday uptick to the 0.6510 region on Thursday and drops to a fresh daily low during the first half of the European session, though it lacks follow-through. Spot prices currently trade just below the 0.6500 psychological mark, nearly unchanged for the day, and for now, seem to have stalled a recovery move from the lowest level since August 5 touched earlier this week. 

The US Dollar (USD) regains positive traction and reverses a part of the previous day's slide to a two-week low, which, in turn, is seen as a key factor exerting some pressure on the AUD/USD pair. US macro data released on Wednesday pointed to a resilient economy and stalling inflation progress, suggesting that the Federal Reserve (Fed) might be cautious about further rate cuts. This, in turn, triggers a modest bounce in the US Treasury bond yields and helps revive the USD demand.