Geopolitical tensions and upcoming RBA minutes keep the Australian Dollar subdued below 0.6900 against the USD.
The AUD/USD pair remains flat at around 0.6895 in early Asian trading on Monday, as investors monitor US-Iran negotiations. Uncertainty over talks to resolve tensions in the Strait of Hormuz has kept traders cautious, with both nations set to meet in Qatar on Tuesday.
Recent employment data showed Australia’s unemployment rate fell to 4.4% in May, matching expectations. Markets have priced in a 19% chance of an RBA rate hike at its August meeting, according to the ASX RBA Rate Indicator. The RBA will release its monetary policy meeting minutes on Tuesday, while the US jobs report on Thursday could further influence the pair.
Any escalation in Middle East tensions may bolster the USD as a safe-haven asset, pressuring the AUD/USD pair.