Safe-haven demand lifts USD after Trump declares Iran memorandum over, weighing on risk-sensitive currencies and equities.
The Australian Dollar reversed early gains, falling to 0.6915 against the USD in European trading. The decline followed remarks from US President Donald Trump, who stated the Memorandum of Understanding with Iran appeared over, fueling demand for safe-haven assets.
Earlier, the AUD had strengthened after RBA Assistant Governor Sarah Hunter reaffirmed the central bank’s readiness to act on inflation and employment. Meanwhile, S&P 500 futures dropped over 0.7% to 7,445, reflecting weakened risk appetite. The US Dollar Index held near 101.15 after recovering from losses.
Investors await the FOMC minutes from June’s policy meeting, seeking clarity on the Fed’s reluctance to provide forward guidance. Fed Chair Kevin Warsh previously noted policymakers agreed such guidance was unsuitable in the current environment.