AUD/USD drops as the US dollar soars through 105 the figure, DXY

  • AUD/USD bears are moving in as the US dollar strengthens in risk-off. 
  • DXY has rallied to beyond 105 the figure, dragging commodity currencies lower. 

At 0.6875, AUD/USD is lower on the day by some 0.4% as the US dollar springs back to life, rallying through the 105 figure as measured against a basket of currencies via the DXY index. The dollar index (DXY), which measures the greenback against six counterparts, ticked up 0.51% to 105.08. The two-decade high of 105.79 was struck on June 15. Quarter-end rebalancing of portfolios is also feeding into higher volatility in financial markets.

The greenback has edged higher on Wednesday as the euro gave back earlier gains despite European Central Bank President Christine Lagarde saying the era of ultra-low inflation that preceded the pandemic is unlikely to return. The ECB is widely expected to raise interest rates in July for the first time in a decade, following its global…

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