The AUD/USD pair edged higher through the Asian session and was last seen hovering near the top end of its daily trading range, just above the 0.7700 mark. The pair caught some fresh bids on Tuesday and for now, seems to have snapped two consecutive days of the losing streak amid a modest US dollar pullback from near one-month tops. The global risk sentiment remained well supported by hopes for additional US fiscal stimulus measures. This, in turn, was seen as a key factor that undermined the safe-haven USD and benefitted the perceived riskier aussie.
The momentum assisted the AUD/USD pair to recover the previous day's modest losses to two-week lows, through the upside is more likely to remain limited. Expectations of a larger government borrowing triggered a fresh leg up in the US Treasury bond yields. This might help limit any meaningful downside for the greenback and keep a lid on any runaway rally for the major, at least for the time being.