Australian Dollar pulls back from weekly high as USD rebounds

AUD/USD declined by 0.64% to 0.6494 on Wednesday.

The US Dollar strengthened due to geopolitical concerns and higher US yields.

A hawkish RBA might limit the downside for the pair.

The AUD/USD declined by 0.64% to 0.6495 on Wednesday. The decline came after the pair touched a one-week high earlier in the session. The move lower was likely driven by a combination of factors, including a rebound in US bond yields that made the US Dollar Index (DXY) rise to yearly highs around 107.00.

That being said, the AUD/USD pair has a slight recovery, supported by hawkish Reserve Bank of Australia (RBA) Minutes and a consolidating US Dollar. The RBA indicated potential future rate adjustments, providing support to the Aussie. Despite these positive factors, AUD/USD faces challenges due to weak Australian and Chinese economic data.