AUDUSD - Short Post US Inflation Data

We still hold a short view on AUDUSD despite the currency pair continuing it's rebound from yearly lows around the 0.7 psychological level. Additionally, the US inflation rate came in today at 6.8 % as forecast resulting in limited price action. However, the impact of the Omicron covid variant could disproportionately impact the Australian dollar as it is sensitive to the shocks in the global economy as commodity currency whilst the United States Dollar is seen as a safe haven. Therefore we anticipate AUDUSD continuing it's long term downtrend and challenging support at 0.71356 in the coming weeks.