Escalating geopolitical tensions and a robust US jobs report lift the USD, pressuring the Australian Dollar near key support levels.
The AUD/USD pair dropped to 0.7035 in early Asian trading Monday, extending losses as the US Dollar strengthened. Rising Middle East tensions, including Iranian missile strikes on Israel, fueled demand for the safe-haven USD. US President Trump urged Israel to avoid retaliation, citing risks to a fragile peace deal.
US Nonfarm Payrolls rose by 172,000 in May, exceeding revised April figures of 179,000, while the unemployment rate held at 4.3%. The strong jobs data reinforced expectations of a resilient US economy, supporting the USD. Meanwhile, the Reserve Bank of Australia’s hawkish stance on inflation may limit further AUD declines.