External drivers have been the major drivers for the AUD/USD pair. This should remain the case in the current market environment, which could drag the aussie down below the 0.71 level, analysts at ING report.

External factors remain in the driver’s seat

“AUD is less exposed than European currencies to swings in the Russian ruble (RUB) but given its high-beta to risk sentiment, the aussie is still facing considerable downside risks.”

“Incidentally, the iron ore sell-off as China aims to curb price speculation can also be a drag on AUD.”

“With no help from the RBA, AUD/USD could move back below 0.7100 in the near-term as the external environment deteriorates.”