AUD/USD has eased below the 0.70 mark. Economists at Commerzbank believe that the pair is unlikely to see a substantial rise.

AUD is struggling in two respects

“On the one hand, concerns about the effects of China’s strict corona policy on the Chinese economy and thus on the Australian economy are likely to be reflected in the AUD exchange rates. On the other hand, it is likely to be the USD strength that has sent AUD/USD plummeting as well.”

“As long as the Fed is ahead of the game as far as monetary policy tightening is concerned AUD is likely to struggle to make significant gains against USD.”