The Australian Dollar gains 0.15% against the USD as easing Middle East tensions reduce demand for the safe-haven Greenback.
AUD/USD climbed to 0.7160, up 0.15% on Monday, as the US Dollar retreated from recent highs. Improved market sentiment followed Iran’s confirmation of ongoing diplomatic talks with Washington, reducing demand for safe-haven assets.
The US Dollar Index (DXY) fell after failing to sustain earlier gains, while concerns over Middle East tensions and US President Donald Trump’s comments kept investors cautious. Weak Chinese economic data, including April Retail Sales growth of 0.2% YoY and Industrial Production at 4.1%, weighed on the Aussie’s rebound.
Markets now await the Reserve Bank of Australia’s minutes for further policy cues, with the currency’s gains limited by China’s slowing economic momentum.