The Australian Dollar gains against the USD as a US-Iran peace agreement boosts risk sentiment and weighs on the safe-haven Greenback.
The AUD/USD pair climbed to around 0.7025 in early Asian trading on Thursday, supported by optimism over a US-Iran peace deal. The agreement, signed electronically by US President Donald Trump and Iran’s President Masoud Pezeshkian, is expected to take immediate effect, according to Pakistan’s prime minister.
The Federal Reserve held its benchmark rate steady at 3.5%-3.75% on Wednesday, while the Reserve Bank of Australia kept its Official Cash Rate unchanged at 4.35% on Tuesday. Hawkish Fed signals could limit further USD declines.
Markets await the US Initial Jobless Claims report later in the day, which may influence risk sentiment and currency movements.