The Australian Dollar declines for a second day amid broader USD demand fueled by geopolitical tensions in the Middle East.
AUD/USD dropped 0.36% to 0.6970 on Friday, extending losses for a second consecutive session as the US Dollar gained strength. Rising geopolitical tensions in the Middle East drove demand for the safer USD, pressuring risk-sensitive currencies like the AUD.
Despite the daily decline, the pair remains on track for a third straight weekly gain. Earlier in the week, the AUD had benefited from improved risk sentiment and expectations of steady monetary policy from the Reserve Bank of Australia.
Markets are now focused on further developments in the Middle East and upcoming US economic data for direction.