The pair recovers early losses as the US Dollar Index dips to 99.20 amid optimism over US-Iran negotiations.
The AUD/USD pair stabilizes around 0.7150 in European trading after erasing earlier declines. The recovery follows a pullback in the US Dollar Index (DXY) to near 99.20, down from an intraday high of 99.40, driven by renewed speculation of a US-Iran agreement.
Iran’s foreign ministry confirmed ongoing negotiations via Pakistan, while US President Donald Trump suggested Iran is eager to finalize a deal. The DXY’s decline contrasts with its recent strength, though the pair remains below its 20-day EMA at 0.7180, signaling near-term resistance.
Investors now await the Reserve Bank of Australia and Federal Open Market Committee meeting minutes, due Tuesday and Wednesday, for further policy cues. The RSI at 48 indicates slight bearish momentum, though the broader uptrend remains intact above 0.6992 support.