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AUD/USD under pressure as oil tumbles

The Aussie ended a four-day rally and dropped sharply this session as sentiment soured across the financial markets as oil turned back in the negative territory after Kuwait labor strike ended.

Overnight, the dollar remained broadly lower against the other major currencies on Tuesday, as the release of disappointing U.S. housing sector data continued to weigh on demand for the greenback.

The recent speech by RBA Governor Stevens also continues to weigh on the investors’ mind and hence, reduces the demand for AUD against its American rival. Further, markets look to book profits on their AUD kings after the recent strength, as focus now shifts towards the US existing home sales and US crude inventories data due later today for further incentives on the Aussie.

Meanwhile, uncertainty over future U.S. rate hikes persisted after New York Federal Reserve President William Dudley warned on Monday that the U.S. central bank is likely to stick to a cautious approach on tightening monetary policy.

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