The Australian dollar surged 0.8% against the US dollar as geopolitical optimism pressured the greenback.
AUD/USD climbed 0.8% to settle near 0.7240 on Wednesday, approaching levels not seen since 2020. The pair tested 0.7280 intraday but failed to sustain gains above 0.7250.
The move followed speculation over a potential Iran nuclear deal, which weighed on the US dollar. The greenback’s broader weakness supported commodity-linked currencies like the Australian dollar.
Markets now await further cues on US monetary policy and geopolitical developments to gauge the pair’s next direction.