AUD Slumps 0.73% Amid Tech Weakness, AI Concerns, and Fed Hike Odds

The Australian Dollar (AUD) fell by over 0.73% on Monday due to a decline in technology shares and heightened tensions in the Middle East, high energy prices, and a jump in bond yields.

The fall in US equity markets was triggered by concerns from AI company leaders about the rapid pace of advances in the industry, leading them to call for a slowdown.

The US 10-year Treasury yield surpassed 5%, boosting the US Dollar and making it more attractive as a safe-haven asset.

Investors are pricing in almost a full rate hike by the Federal Reserve (Fed) due to rising inflation expectations, which could further support the US Dollar.