AUD/USD hits fresh 33-month tops near 0.7780 region, lacks follow-through

The AUD/USD pair rallied around 45-50 pips from Asian session lows and refreshed 33-month tops, around the 0.7780 region in the last hour.

The pair attracted some dip-buying near the 0.7730-35 region and turned positive for the second consecutive session on Wednesday amid the underlying bearish sentiment surrounding the US dollar. Increasing bets for a Democrat victory in the crucial US Senate runoff elections in Georgia further raised hopes of more fiscal stimulus.

Expectations of larger government borrowing pushed the benchmark 10-year US Treasury yield to the highest level since March and held the USD bulls on the defensive. This was seen as a key factor that extended some support to the AUD/USD pair. However, a softer tone in the equity markets kept a lid on any strong gains for the perceived riskier aussie.