Despite the PBOC’s monetary policy remaining unchanged, the AUDUSD has recovered after falling below 0.6660.

VOT Research Desk

Despite the People’s Bank of China (PBOC) maintaining its stance on interest rates as being unchanged, the AUDUSD has declined after falling below the immediate support of 0.6660.

When the asset was attempting to pass the 0.6680 immediate hurdle earlier in the Tokyo session, selling pressure was present.

The US dollar index (DXY), meantime, has climbed above the round-level barrier of 107.00 and is now approaching Tuesday’s high of 107.24.

The risk-perceived currencies are being impacted by a resurgence in negative market sentiment.

The likelihood of the Federal Reserve (Fed) continuing its current 75 basis point (bps) rate hike cycle has sharply decreased, pushing the yield on 10-year US Treasury bonds below 3.81%.

Investors will now pay close attention to RBA Governor Philip Lowe’s address, which will be on Tuesday. The RBA Governor may determine the upcoming monetary policy actions.