AUD/USD Under Pressure, US Dollar Remains Dominant
The AUD/USD weakened as the US dollar continued to draw support from safe-haven sentiment. Global uncertainty increased after US-Iran negotiations stalled again, while rising oil prices led investors to avoid riskier assets.
The Australian dollar also came under pressure because the AUD is known to be sensitive to risk sentiment. When the market enters a cautious mode, demand for riskier currencies like the AUD typically weakens, especially when the US dollar is strengthening.
In addition to geopolitical factors, the market is also closely monitoring the economic outlook for China, Australia's main trading partner. Concerns about commodity demand from China could limit the Aussie's room for strength, given that the Australian economy is closely tied to commodity exports.
Technically, the AUD/USD still appears to be struggling to build rebound momentum. As long as the US dollar remains strong and global sentiment remains stable, the pair is likely to remain within a limited range, with a tendency to weaken in the short term. (Zaf)
Source: Newsmaker.id
