Led by market sentiment, AUD/USD recovers some daily losses

After reaching a daily low at 0.7225, the AUD/USD pair was able to trim some of its losses, stills down by 0.22%, is trading at 0.7275 during the New York session.

Market sentiment struck the Asian and the European session amid surging energy prices and worldwide higher yields, these factors ignited a selloff in the global equity markets.

That prevalent market mood carried on in the New York session until Senator Mitch McConnell, the leader of the Republicans, offered a short term debt limit increase that would last through November 2021.

The U. S. stocks positively reacted to the news, with the three major indices rising between 0.11% and 0.30%.

Further, risk-sensitive currencies like the AUD, the NZD, and the CAD trimmed some of their earlier losses against their U. S. counterpart.