AUD/USD Appears Weak Near a Week Low During Wide USD Recovery

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.

Learn from market wizards: Books to take your trading to the next level

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Currencies Direct

• 

  Jekyll & Hyde

• 

  Quoted Data

• 

  Fat Prophets