AUD/USD Pauses at Key Level Amid US Dollar Pullback

The AUD/USD pair has managed to hold above the 0.7100 level, despite the US Dollar's pullback in the European session.

This comes after US Federal Reserve Chair Kevin Warsh highlighted inflation concerns, which helped calm the fixed-income market and triggered a modest decline in US bond yields.

Additionally, bets that the Reserve Bank of Australia will raise interest rates later this month are supporting the AUD/USD pair.

However, the Fed's hawkish outlook and inflation risks stemming from higher oil prices could still influence US bond yields and limit deeper losses for the safe-haven buck.