AUD/USD: Russia-Ukraine tensions escalate, weighing on outlook for risk-FX in the open

• AUD/USD has to safeguard 0.7150 as bears are hopeful around it.
• The escalation of the Russia-Ukraine tensions on weekend has underpinned the risk-off impulse.
• The headlines from the Russia-Ukraine tussle will remain the major driver for the AUD/USD.

The AUD/USD pair is set to attract significant offers from the market participants as the geopolitical tensions amid the Russia-Ukraine tussle escalated on the weekend, which may keep the investors on their toes.

The extension of drills by Russia and Belarus in the eastern part of Ukraine, which was due to end on Sunday, had poised AUD/USD to start on a cautious note on Monday.

On Sunday, explosions operated by separatists in the eastern Donbas region, specifically in the centre of Donetsk city, forced Ukraine President Volodymyr Zelenskiy to call for an immediate ceasefire in eastern Ukraine. He also said Ukraine supports peace talks within the Trilateral Contact Group, where Ukraine participates along with Russia amid the Organisation for Security and Co-Operation in Europe (OSCE), as per Reuters.

Russia's potential build-up of troops in eastern Ukraine in the Donetsk and Luhansk regions has underpinned the risk-off impulse for Monday opening.

Meanwhile, the headlines from the western leaders to put sanctions on Russia are intensifying and poising a potential threat for the global markets.

The European Union (EU) is ready to initiate massive sanctions on Russia despite the associated risk of harming its own economy if it would be required to encounter the kremlin on the buildup of troops in eastern Ukraine, said by the European Council President Charles Michael.

On the contrary, the US dollar index is likely to be held by the bulls as the rising geopolitical tensions may improve the appeal for the safe-haven assets.

Meanwhile, the Manufacturing Purchasing Managers Index (PMI) will be released by both the Commonwealth Bank of Australia and the Markit Economics on Monday, which will also impact the Aussie against the greenback.