Ella 
AUD/USD extended losses for a third straight session on Tuesday, likely due to risk-off sentiment as investors cautiously awaited Israel’s response to Iran’s unprecedented air strikes on Saturday. However, the pair pared losses after mixed data from China.
The Australian dollar faces obstacles amid concerns that the Reserve Bank of Australia (RBA) may need to cut interest rates before the United States does. Persistent high inflation in the world’s largest economy has raised uncertainty about whether the Federal Reserve can take any action this year, the Financial Review reported. The Fed has traditionally been the world’s most influential central bank because of the size of the financial markets it oversees, often leading rate-cutting cycles around the world.
The U.S. Dollar Index (DXY) remains on an upward trajectory, likely affected by rising U.S. Treasury yields. Stronger-than-expected U.S. retail sales data eased concerns that the Federal Reserve may ease monetary policy, boosting the dollar (USD). Investors are likely to focus on U.S. housing data due out on Tuesday, as well as comments from Federal Reserve Chairman Jerome Powell at a forum in Washington.
