AUD/USD slides further below mid-0.7100s amid a broad-based USD

AUD/USD came under renewed selling pressure on Monday amid a pickup in the USD demand.The prevalent risk-on mood also did little to lend any support to the perceived riskier aussie.The downside is likely to remain cushioned as the focus remains on the FOMC policy decision.The AUD/USD pair extended its steady intraday descent through the early part of the European session and dropped to a fresh daily low, around the 0.7140-35 region in the last hour.The pair struggled to capitalize on last week’s strong recovery move from sub-0.7000 levels or the lowest level since November 2020 and met with a fresh supply on Monday. The US dollar was back in demand amid hawkish Fed expectations and was seen as a key factor that exerted some downward pressure on the AUD/USD pair.

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