AUD/USD testing critical support at 0.7190 amid risk-aversion

• AUD/USD takes a hit in sync with the risk sentiment on the Fed’s tightening concerns.
• The US dollar holds the recent rebound while global tech sell-off extends.
• The aussie ignores strong Chinese Caixin Services PMI, as it nears key support.

AUD/USD is breaking below the 0.7200 level in a renewed selling wave that has caught the high-beta assets, as investors continue to weigh the increased odds of aggressive Fed tightening.

The Fed December meeting’s minutes revealed that the central bank is prepared for earlier and faster rate increases to counter inflation while kicking off reduction in its overall asset holdings.

Expectations of aggressive Fed’s tightening spooked investors and triggered a massive tech sell-off on the global bourses. Markets weighed in the Fed’s hawkishness against the economic recovery and looming Omicron covid variant risks.

more to come ....