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AUD/USD holds near 0.6950 as US dollar weakens

The pair is trading around 0.6941 ahead of the US CPI release due Tuesday and Federal Reserve Chairman Kevin Warsh testimony to Congress.

Reported · Written up by our desk · Major Pairs

The Australian dollar was slightly lower against the US dollar on Monday, with AUD/USD around 0.6941 after finding support following a reversal from Friday’s 0.6970 highs, FXStreet said.

FXStreet attributed the lack of further AUD decline to weakness in the US dollar, even as risk appetite was weighed by rising US and Iran hostilities over the weekend. Tehran’s announcement that it would close the Strait of Hormuz boosted crude prices, adding to uncertainty for global growth.

The report linked that backdrop to expectations that central banks may need to raise interest rates to contain inflation, but said the Aussie is still getting support from the weaker greenback.

Technically, FXStreet noted the pair has a constructive near term bias as it has broken and confirmed above a trendline resistance from early June highs, while investors look to US CPI on Tuesday and Warsh’s testimony for clearer direction.

Latest closeWTI crude $71.51 ▼0.8%

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