The Australian dollar climbs as geopolitical risks ease and strong domestic jobs data boosts RBA tightening expectations.
AUD/USD advanced for a second straight session, trading near 0.7000 in Asian hours Monday. The pair gained as the USD weakened alongside a sharp decline in oil prices, following the US decision to pause strikes on Iran and Tehran’s suspension of retaliatory actions after 13 days of escalation.
Markets remain wary of potential supply disruptions after Iran-backed Houthis claimed attacks on Saudi facilities. Reports suggest the US halted strikes due to concerns over dwindling interceptor supplies and limited viable targets in Iran. Meanwhile, strong Australian employment data for June has reinforced expectations of further RBA rate hikes.
Investors are also focused on this week’s Fed meeting, where rates are expected to remain unchanged before a potential September hike. A minority still anticipates a surprise move this week.