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    AUD/USD tumbles in line with Aus bond yields, USD strength

    AUD/USD has broken the key intraday support level at 0.7420, finding new lows for the session at 0.7405, with an acceptance below now underway, as demand at the lows is being so far matched by supply amid broad-based USD strength.Aus bond yields fall sharplyOne of the main catalysts behind today's decline in the Aussie, other than the recovery in the DXY, is the collapse in Australian bond yields, leading to the spread between Australian and US yields to narrow, currently at 0.428%. Downward pressure in the US 30-year US bonds (indicaive of a flight to safety) is also assisting the move for sellers in the pair, as that adds pressure to Australian bond yields.AUD still a buy on dips?Kathy Lien, Co-Founder at BK Asset Manegement, expressed her view on the Aussie, noting that "the pair rejected 75 cents for the second day in a row", adding that "we still believe AUD is a buy on dip for the same reason why NZD is attractive but AUD/NZD selling and the recovery in the dollar could take the currency pair briefly below 74 cents."

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