Australian Dollar bulls seem hesitant near 0.7100 as USD recovers from two-month low
The AUD/USD pair turns lower following a modest Asian session uptick on Tuesday, awaiting a break below the 0.7100 mark before extending the previous day's retracement from the highest level since June 5.
The AUD/USD currency pair experienced a decline following a brief uptick in the Asian session on Tuesday, as it approached a critical threshold of 0.7100 before resuming its previous day's retracement from its highest level since June 5. Meanwhile, the US Dollar (USD) showed signs of strength and rebounded from a two-month low, which occurred earlier in the week.
This upward movement was fueled by concerns over inflation resulting from rising oil prices, leaving the possibility of an interest rate hike by the US Federal Reserve (Fed) open. Additionally, tensions between the US and Iran, coupled with the possibility of declaring the Strait of Hormuz as a US territory, added to the geopolitical risk premium supporting the Greenback. These factors collectively acted as headwinds for the AUD/USD pair.
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