On Tuesday, the AUD/USD currency pair kept going up and was near the mid-0.6900s, the highest level since late August. Spot prices changed significantly during the first half of the European day, but they are now close to 0.6900.

The AUD/USD pair is being hurt because the US dollar is getting more robust and stable because of many factors. US Treasury bond yields make more people want to buy USD. The cautious market mood, which helps the safe-haven greenback, also hurts the risk-averse Aussie.

Even though China has moved away from zero COVID, investors are worried that its large number of travelers may cause another COVID-19 pandemic. The war between Russia and Ukraine has also made people worry about a global economic collapse. The weakness in the stock market shows that people are less willing to take risks.

But more bets on fewer Fed rate hikes could keep US bond rates and the dollar from going up. Before Fed Chair Jerome Powell’s speech, which will show how quickly rates will go up at the next meetings, USD bulls don’t seem eager to make big bets. It will add to the need for USD.

Conclusion

But the next move of the AUD/USD pair will depend on the US consumer inflation data released on Thursday. Fundamentals show that the easiest way for the USD to move is down. It makes the recent appreciation of the significance even stronger.