AUD/USD keeps the red below 0.7200 mark as Russia launches full-scale invasion of Ukraine
- AUD/USD witnessed aggressive selling and reversed its gains recorded over the past three sessions.
- Russia-Ukraine conflict benefitted the safe-haven USD and weighed on the perceived riskier aussie.
- Investors now eye US data, though the focus will remain on geopolitics and the situation in Ukraine.
The AUD/USD pair maintained its heavily offered tone through the mid-European session and was last seen trading around the 0.7165 region, or the one-week low.
Russian military forces invaded Ukraine earlier this Thursday and fired missiles at several Ukrainian cities. Reports indicated that as many as 40 Ukrainian soldiers and 10 civilians were killed by Russian shelling. Ukraine added that troops continue to pour across its borders into the eastern regions and landing by sea at the cities of Odesa and Mariupol in the south.
The worsening situation in Ukraine triggered a massive sell-off in the global equity markets. Investors rushed to take refuge in traditional safe-haven assets, which boosted the US dollar and prompted aggressive selling around the perceived riskier aussie. The bearish pressure remained unabated amid fears about a further escalation in tensions between Russia and the West.
The United States and its allies were quick to condemn Russia's actions and President Joe Biden said that he would meet the leaders of G7 to map out more severe measures against Russia. This, in turn, kept investors on the edge, which was evident from the ongoing freefall in the financial markets and forced the AUD/USD pair to reverse its gains recorded over the past three trading sessions.
Market participants now look forward to the US economic docket, highlighting the release of the Prelim GDP report and the usual Weekly Initial Jobless Claims. The data, however, might do little to influence the USD price dynamics. The focus remains on developments surrounding the Russia-Ukraine saga, which will drive the broader risk sentiment and provide some impetus to the AUD/USD pair.
Technical levels to watch