AU-US yield spread at lowest since 2001, AUD/USD at 2001-2017 rising trend line support

The spread/difference between the 10-year Australia government bond yield and the US 10-year treasury yield is 18.3 basis points (bps); the lowest level since 2001. Back then the AUD/USD pair was trading at 0.5020 levels. 

The spread could narrow further if the iron ore sell-off continues and/or the Fed starts telegraphing faster rate hikes. 

It is interesting to see the AUD/USD pair is trading at the support offered by the trend line sloping higher from 2001 low and 2008 low.