AUD/USD Price Forecast: Struggles to return to 0.7000 amid firm US Dollar
The Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
The Australian Dollar (AUD) struggles to regain its early gains and falls to around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday. US Dollar strength, driven by surging bond yields, weighs on the Aussie pair. US Dollar Index (DXY), a gauge of the Greenback's value against six major currencies, climbs 0.15% to near 102.25, nearing its annual high.
US bond yields stay elevated due to elevated inflation projections and geopolitical uncertainties, supporting the US Dollar's bullish stance. Despite the Aussie pair's decline, investors remain watchful for Federal Open Market Committee (FOMC) minutes, which could provide further clues about future US interest rate policy.
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