AUD/USD prints fresh daily highs above 0.7600

• DXY drops across the board amid lower yields and risk appetite.
• AUD/USD recovers further from multi-month lows.

The AUD/USD bottomed earlier on Thursday at 0.7531, the lowest level in three months, and then rebounded sharply. After the beginning of the American session, it climbed further and printed a fresh daily high at 0.7607.

As of writing, AUD/USD trades at 0.7603 modestly higher for the day, and is testing the 20-SMA in the four-hour chart. A consolidation above would strengthen the short-term outlook for the Aussie.

The key driver for the rebound is the decline of the US dollar. The DXY is falling for the second day in a row and dropped back under 93.00. Lower US bond yields and higher equity prices weigh on the greenback.

The 10-year US yields fall almost 4% at 1.67% while the Dow Jones gains 0.35% and the Nasdaq 1.45%. Optimism received a boost from US data with the ISM Manufacturing Index rising more than expected to the highest level since 1983. On Friday, the US official employment report is due.

Technical levels