Australian Dollar underperforms amid risk-off mood
The Australian Dollar (AUD) is down against its major currency peers, trading 0.45% lower at around 0.7135 against the US Dollar (USD) during the European trading session on Monday.
The Australian Dollar (AUD) has been underperforming in recent trading sessions as investor sentiment has become more risk-averse. This is largely due to expectations of further interest rate hikes by the Federal Reserve (Fed). The Australian currency was the weakest against the US Dollar in the latest comparison. Market sentiment is further dampened by the anticipation of a potential 25 basis points hike from the Federal Open Market Committee (FOMC).
The Reserve Bank of Australia (RBA) Governor Michele Bullock's upcoming speech before the House of Representatives Standing Committee on Economics is also expected to impact AUD outlook. The AUD/USD pair is currently trading at 0.7134 and is under the 20-period exponential moving average (EMA) at 0.7156. A break below this level could signal further downside.
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