• AUD/USD retreats after touching a 19-month peak amid reviving USD demand. 
• Global economic woes and geopolitical risks benefit the safe-haven Greenback.
• The divergent Fed-RBA policy outlook limits any meaningful slide for the pair. 

The AUD/USD pair struggles to find acceptance above the 0.6900 round figure and retreats a bit from its highest level since February 2023 touched earlier this Wednesday. The intraday descent drags spot prices to the 0.6880-0.6875 region, or a fresh daily low during the first half of the European session and is sponsored by a modest US Dollar (USD) uptick.

Despite the latest optimism over China's new stimulus measures, lingering concerns about a global economic downturn and persistent geopolitical risks temper investors' appetite for riskier assets. This is evident from a weaker opening across the European equity markets, which assists the safe-haven USD to rebound from the vicinity of the YTD low touched last week and drives flows away from the risk-sensitive Aussie. That said, a combination of factors should continue to act as a tailwind for the AUD/USD pair and help limit deeper losses.