The Australian Dollar declines as soft economic data and geopolitical risks drive safe-haven demand for the USD.
The AUD/USD pair fell to near 0.7150 in early Asian trading on Thursday. Weak Australian Purchasing Managers’ Index data and escalating US-Iran tensions weighed on the currency, boosting demand for the US Dollar as a safe haven.
Earlier data showed a decline in Australia’s economic activity, reinforcing concerns about growth. The pair had previously traded in a narrow range, with recent sessions marked by volatility amid shifting risk sentiment.
Markets reacted by reducing exposure to risk-sensitive assets, with the AUD underperforming against the USD.