Renewed Middle East tensions drive demand for the safe-haven USD, pushing the Australian Dollar lower in early Asian trading.
The AUD/USD pair dropped to near 0.6940 during Monday’s early Asian session, extending losses below 0.6950. The decline follows a new round of military strikes between the US and Iran, heightening geopolitical risks.
Risk-sensitive assets, including the Australian Dollar, typically weaken amid escalating tensions. The pair had traded above 0.7000 last week before the latest flare-up in the Middle East.
No immediate market reaction data was provided, but safe-haven flows are likely supporting the USD against higher-yielding currencies.