AUD/USD pares intraday gains amid a modest USD rebound, holds steady above 0.6700

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AUD/USD pares intraday gains amid a modest USD rebound, holds steady above 0.6700
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AUD/USD pares intraday gains amid a modest USD rebound, holds steady above 0.6700 – by hareshmenghani AUDUSD China Recession Fed Currencies

A combination of supporting factors assists the US Dollar to attract some dip-buying on Monday, which, in turn, acts as a headwind for the AUD/USD pair. Despite the easing of strict COVID-19 curbs in China, a sharp rise in new infections could delay the full reopening of the economy. This, along with the protracted Russia-Ukraine war, keeps a lid on any optimistic move in the markets and offers some support to the safe-haven buck.

Moving ahead, the focus now shifts to this week's release of the final US Q3 GDP print and the core PCE- the Fed's preferred inflation gauge. In the meantime, the US bond yields will play a key role in influencing the USD price dynamics and provide some impetus to the AUD/USD pair. Traders will also take cues from the broader risk sentiment and COVID-19 situation in China to grab short-term opportunities around the risk-sensitive Aussie.

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