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fxJun 23, 2026, 11:20 PM

AUD/USD Plunges Over 1.2% as Risk Aversion Boosts USD

The Australian dollar fell more than 1.2% against the US dollar on Tuesday, trading at 0.6915, driven by risk aversion and expectations of higher US interest rates strengthening the greenback.

AUDUSD

The Australian dollar suffered a sharp decline of over 1.2% on Tuesday as risk-averse sentiment fueled demand for the US dollar. The AUD/USD pair dropped from daily highs to trade at 0.6915.

Market participants are pricing in higher US interest rates, which has boosted the greenback across the board. The Aussie remains under pressure amid the broad risk-off mood and relative monetary policy divergence.

Traders will watch for further cues from US economic data and Federal Reserve commentary that could influence the pair's near-term direction.

Source: FXStreet Forex News