Renewed US-Iran tensions push the Australian Dollar lower against the USD amid heightened geopolitical risks.
The AUD/USD pair fell to 0.7165 during Asian trading on Tuesday, pressured by escalating US-Iran tensions. The US military conducted strikes on Iranian missile sites and boats in southern Iran, citing self-defense to protect troops from threats.
Prior to the strikes, Iranian officials indicated progress in negotiations with the US, though a deal remains unlikely in the near term. The uncertainty has bolstered demand for the safe-haven USD, weighing on risk-sensitive currencies like the AUD.
Australia’s April CPI data, due Wednesday, may influence the pair further. Headline inflation is expected to rise 4.4% YoY, down from 4.6% in March, with a 0.6% monthly increase projected.