AUD/USD struggles around 0.7200 as geopolitical tensions dent market impulse

• AUD/USD finds barricades near 0.7200 as the Russia-Ukraine fears escalate.
• The statements from the UN’s emergency meeting will keep investors on their toes.
• Asian markets are going through a bloodbath as the geopolitical situation worsens.

The AUD/USD pair has rebounded from Tuesday’s low at 0.7172 but finds barricades near 0.7200, as the emergency meeting by the United Nations (UN) adds fuel to an already highly uncertain environment. The escalation of geopolitical tensions between Russia and Ukraine has brought a bloodbath in the Asian markets, weighing down on the risk-sensitive antipodeans.  

As the UN Security Council emergency meeting undergoes, the Russian ambassador said, “allowing 'a new bloodbath in the Donbass is something we do not intend to do.” While, Ukraine is not convinced with the assurance from the Kremlin statements and reiterates that, “its border will remain unchanged regardless of Russian announcements,”

Till then, the emergency meeting by the UN will not reach a principal outcome; the risk-sensitive assets will continue to remain in the grip of bears.

The unavailability of any trigger in Tuesday's speech from the Reserve Bank of Australia (RBA)’s Christopher Kent has also failed to support the aussie against the greenback.

Meanwhile, Australia pulls diplomats out of Ukraine on rising expectations of imminent strikes between Russia and Ukraine. Adding to that, the Australian administration has urged Australians to leave Ukraine.

The US dollar index (DXY) is comfortable trading above 96.00, around 96.20. The DXY is moving north backed by the ample volatility in the market, which has squeezed the risk appetite of the investors dramatically.

AUD/USD will dance to the tunes of the Russia-Ukraine headlines further. However, the US Consumer Confidence print and Markit PMI Composite figures on Tuesday will be keenly watched. While the Australian docket will report quarterly and yearly Wage Price Index (WPI) numbers on Wednesday.