The Australian dollar rallied significantly in the last six weeks on rising commodity prices and supply chain bottlenecks due to the Russia Ukraine crisis. However, this week was a little different amid the more diplomatic talks between the Russian foreign minister and Ukrainian counterparts. Consequently, the Australian dollar attracted heavy selling on Friday and fell by over 0.88% to trade below the next immediate support level at the 0.7300 mark. The 14-Period Relative strength index indicator is also making lower highs and lower lows, indicating a possible correction ahead. The AUD/USD pair may extend the decline next week after any announcement from U S Federal Reserve regarding the aggressive rate hikes.
