• AUD/USD rebounds to near 0.6500 but the outlook remains bearish.
• Trump’s economic agenda is expected to boost US inflation and economic growth.
• A fresh escalation in the Russia-Ukraine war has dampened the risk-appetite of investors.

The AUD/USD pair recovers more than half of its intraday losses and rebounds to near the psychological figure of 0.6500 in Friday’s European session. The Aussie pair bounces back as the US Dollar (USD) surrenders a majority of its intraday gains after refreshing two-year high. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, gives up gains after facing selling pressure near 108.00 but still holds higher.

The bullish trend in the US Dollar remains intact as investors expect the current policy-easing cycle of the Federal Reserve (Fed) will be shallower than what market participants had anticipated earlier. Market experts believe that price pressures and economic growth in the United States (US) economy could accelerate when President-elect Donald Trump will take the office. Trump mentioned, in his election campaign, that he will raise import tariffs and lower taxes.