AUD/USD drops to near 0.6900 as risk-on eases, focus shifts to Fed Powell’s speech

• AUD/USD has corrected to near 0.6900 as investors have turned cautious ahead of Fed Powell’s speech.
• The USD Index is expected to continue its downside momentum as the overall sentiment is still solid.
• Australia’s monthly CPI and Retail Sales data will be keenly watched.

The AUD/USD pair has sensed solid barricades while attempting to extend a rally above the critical resistance of 0.6950 in the New York session. The Aussie asset has corrected to near 0.6900 as a firmer rally is generally followed by a healthy correction, therefore, it would be ideal not to consider the correction a bearish reversal.

Optimism in the global market eased vigorously as investors are shifting their focus toward the release of the United States Consumer Price Index (CPI) data, which is scheduled for Thursday. S&P500 witnessed a corrective move on late Monday after a stretch of Friday’s solid rally, portraying a caution in the overall upbeat market mood.