- AUD/USD remains subdued on Tuesday in the early European trading hours.
- The Australian dollar losses as an upsurge in the coronavirus delta variant continue.
- An uptick in US Treasury yields underpins the demand for the US dollar.
AUD/USD manages to trade higher on Tuesday morning. The pair extends the overnight session’s gain, although faces some pressure at the upper level.
At the time of writing, AUD/USD is trading at 0.7218, up 0.13% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals rebounds from the lower levels amid higher US benchmark Treasury yields.
The greenback broadly remained higher following reports that the FDA has granted full permission of the two-dose Pfizer-BioNTech vaccine for COVID-19.
On the other hand, Aussie lost ground as investors assessed the impact of another fresh 750+ cases for Sydney and New South Wales.
In the latest development, Pfizer vaccine would be available for people in Victoria aged 16-39 from Wednesday.
The data released on Monday stated the Commonwealth Bank Services PMI and the Commonwealth Manufacturing PMI declined to 43.3 and 51.7, respectively, in August.
It is worth noting that S&P 500 Futures are trading at 4,437.50, up 0.01% for the day.
As for now, traders await the US Existing Home Sales data to trade fresh trading impetus.