AUD/USD Stays Down Under 0.6900 Price Level

Updated:

AUD/USD experienced shorting for 2 days straight. This caused the pair to dip to more than a week low near 0.6870 to 0.6875. The market feeling stays vulnerable amidst the uncertainty of key central banks increasing interest rates to curtail rising inflation. This is to be done in such a way that economic development won’t is hindered.

In addition, the publishing of the flash Euro area Purchasing Manager Index print supported anxiety surrounding the likelihood of a recession. Consequently, this burdened investors feeling. As a result, this affected the AUD/USD pair.

AUD/USD Stays Down Under 0.6900 Price Level

More AUD/USD Price Actuators

Furthermore, the increased demand for the USD applied some downward forces to AUD/USD. The predominant careful market feeling provided some help to the USD, and this attracted more support from hawkish Fed anticipations. Traders appear to believe that the Federal Reserve will continue with its tightening policy to fight rising inflation. The Fed intends to do this by dictating another 75 bps during its coming gathering next month: July. Eventually, this will in a way affect the AUD/USD price action.

Furthermore, Jerome Powell: Fed Chair, said that the current interest rate hike will be correct. Also, he said that the commitment of the Federal Reserve to subdue inflation and the speed of the coming rate hike will be dependent on the incoming data. Consequently, this will support the USD, bringing more short-term losses to the pair: AUD/USD.

Finally, the United States bond yield and the wider market feelings will affect the US dollar price movements. Eventually, this will also affect the AUD/USD.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.