Australian Dollar gets caught between AI selloff and 5% US yields
The Aussie Dollar registered losses of over 0.73% on Monday as sentiment soured due to a fall in technology shares, along with heightened tensions in the Middle East, high energy prices, and a jump in bond yields. The AUD/USD trades at 0.7118, after hitting a high of the day (HOD) of 0.7168. AUD/USD falls as tech weakness, Oil risks and Fed bets lift Dollar The leaders of AI companies in the US expressed concerns about the rapid pace of advances in the industry and called for a slowdown. This triggered a leg lower in US equity markets, while the US Dollar – boosted by the US 10-year T-bond yield past 5% – is poised to end Mondays session up 0.33%, according to the US Dollar Index (DXY). The DXY, which measures the advance of the American Dollar against its six peers, reclaims the 99.00 level, up 99.46. Geopolitics are playing a big role, following Yemen‘s Houthis attack on a Saudi Oil pipeline, which could be shut for several weeks, triggering a shortage of about 7 million barrels per day. Hence, investors’ inflation expectations continued to rise following last weeks US inflation data, which pushed traders to price in almost a full rate hike by









