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Australian dollar gains as US dollar softens near 0.6940

AUD/USD rose about 0.2% to roughly 0.6940, supported by a weaker greenback despite ongoing US-Iran tensions.

Reported · Written up by our desk · Major Pairs

The Australian dollar firmed on Thursday, with AUD/USD trading around 0.6940 and up 0.16% on the day, as the US dollar softened even amid persistent Middle East tensions, FXStreet reports.

FXStreet said investors have treated the latest exchange of attacks between the United States and Iran as part of positioning ahead of potential renewed peace talks, which has limited demand for safe-haven assets. The US Dollar Index, or DXY, was down 0.11% near 100.95.

The greenback also struggled after US labor data showed initial jobless claims falling to 215K for the week ending July 4, while continuing jobless claims edged up to 1.814M, according to FXStreet. In addition, the market reaction to the Federal Reserve meeting minutes weighed on the dollar as policymakers highlighted inflation risks but differed on the future path of monetary policy, reinforcing expectations for policy easing.

In Australia, FXStreet noted that Reserve Bank of Australia Assistant Governor Sarah Hunter said the central bank stands ready to act to return inflation to target while maintaining full employment, which has helped keep expectations for a near term easing cycle contained. The outlet also pointed to caution from China’s subdued inflation, reflecting weak demand in Australia’s largest trading partner.

Latest closeDollar index 101.39 ▼0.1%

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