The Australian Dollar gains as US Dollar softens on Middle East de-escalation and lower oil prices ahead of the Fed meeting.
AUD/USD climbed to 0.7000, up 0.33% on the day, as the US Dollar weakened amid easing geopolitical tensions in the Middle East. Reports of renewed US-Iran diplomatic efforts reduced demand for safe-haven assets, while lower oil prices eased inflation concerns, further pressuring the Greenback.
The Australian Dollar found additional support from Australia’s strong June employment data, fueling expectations of another Reserve Bank of Australia rate hike. Investors await upcoming inflation reports to gauge the RBA’s next policy move. However, caution persists ahead of the Federal Reserve’s meeting, where rates are expected to remain unchanged.
Markets remain focused on Fed guidance and Middle East developments, with traders hesitant to take significant positions until clarity emerges. The current pause in US-Iran tensions has improved sentiment, but uncertainty lingers.