AUD/USD slumps below 0.7200 as Ukraine crisis escalates

• AUD/USD sees a bearish opening gap amid the escalation of war between Russia and Ukraine.
• The risk-off impulse may keep the aussie under tremendous pressure.
• Investors will focus on negotiations between Russia and Ukraine without preconditions.

The AUD/USD pair sees a bearish start upon the negative developments in the Russia-Ukraine war over the weekend and investors witness a risk-off impulse, which keep the aussie on its toes.

For the first time, the 27-countries basket European Union (EU) decided to supply weaponry aid to a nation for a war. The EU would send 450 million euros of weaponry to its eastern neighbor, as per Reuters. The promise of weaponry aid to a country by the EU itself had raised the expectations of a war outrage extension beyond two countries. This has underpinned the risk-off impulse starting out Monday’s session.

The US President Joe Biden mentioned that the Moscow has escalated the war in a ‘total unacceptable’ way as the ongoing Russian invasion on Ukraine is the biggest military action in Europe since 1945.

The sanctions imposed on Russia, which had disconnected the Moscow from international payments environment, dampened the overall financial system of the country. Moscow’ people were rushing to ATMs for cash on intensifying fears of liquidity situation in Russia.

One thing which will keep investors hopeful is the negotiations between the Kremlin and Ukraine at the Belarusian-Ukrainian border and ‘without preconditions’, the Ukrainian president's office said.

Apart from the Russia-Ukraine headlines, investors will look for fresh impetus from the Federal Reserve (Fed)’ members on monetary policy announcement, which is due in March. But, for the activity in the session ahead, the Retail Sales from Australian Bureau of Statistics will remain in focus, which is due on Monday.