Weaker Australian GDP growth and heightened geopolitical tensions weigh on the Australian Dollar against the US Dollar.
The AUD/USD pair fell to around 0.7180 in early Asian trading on Wednesday, extending losses below the 0.7200 mark. The decline follows weaker-than-expected Australian GDP data, which signaled slower domestic economic growth.
Australia’s GDP growth decelerated in the latest quarter, missing consensus estimates and reinforcing concerns about economic momentum. The data adds pressure on the Reserve Bank of Australia as it navigates monetary policy amid global uncertainties.
Heightened US-Iran tensions also contributed to risk aversion, supporting the USD as a safe-haven asset. Markets remain cautious ahead of further developments in both economic and geopolitical fronts.