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AUD/USD continues its downward retracement from last week. The pair slides from the 0.6800 price level and subsequently drew some selling order today. AUD/USD retained its tone throughout the opening of the North American trading period. Now, the pair reclines near a week’s low, barely above the $0.6600 price level.
The United States Dollar gains traction for the 3rd day in a row and capitalizes on its rebound from the lowest depth since August. However, the bettering of the USD is exerting downward forces on AUD/USD. As the United States Retail Sales arrived last week, and better than anticipated, this development brought some doubts to the expectations of inflation rising to its highest. Also, the hawkish indications from the Federal Reserve seem to be indicating that the United States Central Bank is likely to continue its tightening policy. As a result, this seems to further strengthen the United States Dollar.
More AUD/USD Price Influencing Factors
Besides all these, the rampant cautious market sentiment supplies more upward thrust to the dollar. Investors are worried about the growing Coronavirus situation in China and initiated lockdown measures in various financial hubs. Additionally, anxieties about escalating Ukraine-Russia struggle is exerting some undesirable effect on worldwide risk mood, and continues to burden the Australian Dollar.
Also, anxieties concerning poor economic activities keep adding to the present decline in copper prices. And this is another factor repelling demands for AUD. Besides this, predictions that the RBA will hold on to its lenient monetary policies, as well supports the bears. Therefore, a further fall below 0.6600 is more likely to happen.
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