AUD/USD struggled to overstep 0.7230 as the Western leaders load up sanctions on Russia
- AUD/USD is facing barricades near 0.7233 after the Western leaders impose sanctions on Russia.
- The risk-off impulse in the market has underpinned the greenback against the Aussie.
- The sanctions on Russian sovereign debt would block its administration to access Western financing.
The AUD/USD was facing barricades near 0.7233 on Tuesday as the Wester leaders imposed sanctions on Russia. The Kremlin has violated international law by sending troops to eastern Ukraine. Moscow has been supported by the separatist leaders from Donetsk and Luhansk, which have been labelled as ‘independent’ by the Russian leader Vladimir Putin.
Despite the various peace-making suggestions and threats of imposing sanctions by the World leaders, Russia continues to build troops near eastern Ukraine. Many major economies have loaded up sanctions on Moscow.
On Tuesday, Britain hit Russian banks with sanctions while Germany barricades a new gas pipeline from Russia despite the fact that Germany banks upon Russia for its domestic gas usage.
US President Joe Biden has put some serious sanctions on Moscow. "We're implementing full blocking sanctions to large Russian financial institutions, VEB, and their military bank," President Joe Biden said. The move might block the Russian administration from Western financing.
The sanctions imposed on Russia have spurt the volatility in an already highly uncertain market. The antipodean is underperforming against the greenback and is likely to continue underperformance as the safe-haven appeal is getting more traction.
The US dollar index (DXY) has rebounded from Wednesday’s low at 95.97 and has surpassed 96.00 in the early Asian session.
Meanwhile, the quarterly and yearly Wage Price Index (WPI) from the Australian Bureau of Statistics is due on Wednesday. While, the US PMI monthly Composite Reports on Manufacturing and Services has landed at 56, higher than the previous figure of 51.1 on Tuesday.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
