Earlier in the day, the Reserve Bank of Australia said it would buy twice the normal volume of long-term bonds at this week's regular operation. More QE is apparently bullish for the currency in this new normal, and the AUDUSD pair rose nearly 1%.
On the other hand, US yields are rising again today, although only slightly so far, with the 10-year yield up nearly 1% to trade at 1.43%. It looks like the uptrend in yields might continue, which could cause another volatility in the equity markets.
Markets are trying to recover from Friday's declines, with the Nasdaq 100 index up 1.5%, while EU indices were also stronger during the London session.
Precious metals were bid, but it looks like a short-covering rally and fresh demand is missing, especially in gold. The bullion was seen 1% higher, hovering near 1,750 USD, or 8-month lows, while silver failed to breach the 27 USD level to the upside.
Later in the day, the important US ISM manufacturing index is due, and market participants expect the number to stay near last month's 58.5.