AUD/USD trades near 0.7000 on Wednesday, recovering from an intraday pullback but remaining marginally lower on the day.
The pair briefly fell toward 0.6985 before rebounding, while the US Dollar Index (DXY) slipped toward 101.10, helping the Australian Dollar regain some ground
Geopolitical risks remain elevated after United States (US) President Donald Trump warned that the United States would strike Iranian bridges and power plants if Iran attacks another ship in the Strait of Hormuz. The comments increased concerns about a broader conflict and further disruption to global energy supplies. Higher geopolitical uncertainty may support safe-haven demand for the US Dollar, potentially limiting AUD/USD gains, and rising Oil and Gold prices indicate that markets remain cautious.
Investors now await Australia’s June labor market report. Employment is expected to rise by 15K, slowing sharply from May’s 40.3K increase. The Unemployment Rate is forecast to remain unchanged at 4.4%, while the Participation Rate is expected to hold at 66.7%.