CANBERA (dpa-AFX) - The Australian dollar slipped against its major counterparts in the Asian session on Tuesday, as heightened concerns about the possibility of Russia's invasion on Ukraine deteriorated risk sentiment.
U.S. Secretary of State Antony Blinken ordered to close the country's embassy in Kyiv and the embassy staff is being relocated to Lviv due to the dramatic acceleration in the buildup of Russian forces.
In his Facebook post, Ukrainian President Volodymyr Zelensky said that Russia would attack the country on February 16. But his office later clarified that the President's comment was sarcasm.
The Group of Seven advanced economies warned on Monday of economic and financial sanctions that could have massive and immediate consequences on the Russian economy.
Comments from St. Louis Federal Reserve President James Bullard reiterating support for a faster removal of policy accommodation also weighed on the currency.
'I do think we need to front-load more of our planned removal of accommodation than we would have previously,' Bullard told in an interview with CNBC.
The aussie fell to 0.7102 against the greenback and 1.5933 against the euro, pulling away from its prior highs of 0.7140 and 1.5845, respectively. The aussie is seen facing support around 0.70 against the greenback and 1.61 against the euro.
The aussie touched a 1-week low of 0.9054 against the loonie, after rallying to 0.9092 at 10 pm ET. On the downside, 0.88 is possibly seen as the next support level for the currency.
The aussie reversed from an early high of 82.47 against the yen and a multi-month high of 1.0782 against the kiwi, edging down to 81.89 and 1.0737, respectively. The aussie is likely to challenge support around 80.00 against the yen and 1.06 against the kiwi.
Looking ahead, German ZEW economic sentiment for February, Eurozone trade data for December, GDP and employment reports for the fourth quarter are due out in the European session.
At 8:15 am ET, Canada housing starts for January are scheduled for release.
U.S. PPI for January and New York Fed's empire manufacturing survey for February are set to be released in the New York session.
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