AUD/USD declines from a high and remains stable around 0.7000;

The AUD/USD pair starts the new week off well, rising throughout the Asian session to its highest level since mid-August.

 However, the pair has recently lost some of its intraday gains and fallen below the crucial level of 0.7000. A number of variables combine to push the US dollar to a new seven-month low on Monday, which benefits the AUD/USD pair.

 According to US consumer inflation data released this week, the headline CPI decreased in December for the first time in more than two and a half years.

Rising chances of a second interest rate increase by the Reserve Bank of Australia (RBA) in February, supported by the positive domestic statistics published, provide additional support for the Australian Dollar.

 However, market players continue to be concerned about the economic challenges brought on by the COVID-19 epidemic in China.

 In addition, the extended Russia-Ukraine conflict has increased worries about a deepening global economic slowdown, which restrains market optimism.

Additionally, traders were hesitant to make big bullish wagers on the AUD/USD pair due to the US vacation and Tuesday’s Chinese economic release, which includes the Q3 GDP report.