Title: AUD/USD drops to one-week lows, approaches 0.7500 mark
Jun 29, 2021 12:02:38 PM GMT
The AUD/USD pair dropped to one-week lows for the duration of the mid-European consultation, with bears now eyeing circulate in the direction of tough the important thing 0.7500 mental mark.
The pair prolonged the preceding day's rejection slide from the 0.7600 mark and witnessed a few follow-via promoting for the second one consecutive consultation on Tuesday. The Australian greenback is starting to be one of the worst-acting predominant currencies amid worries over renewed COVID-19 lockdowns throughout elements of the country.
Meanwhile, fears over unfold of the tremendously infectious Delta version of the coronavirus weighed on investors' sentiment. This become visible as some other thing that drove flows far from the perceived riskier aside. Apart from this, a broad-primarily based totally US greenback electricity exerted a few extra strains at the AUD/USD pair and contributed to the decline.
The USD becomes supported through speculations that the Fed will tighten its financial coverage in advance if rate pressures preserve to intensify. This, together with a goodish pickup in the US Treasury bond yields, in addition acted as a tailwind for the safe-haven dollar and dragged the AUD/USD pair in addition beneath the 0.7545-40 horizontal support.