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AUD/USD slips near 0.6940 on Middle East strike and CPI jitters
The move comes as the US CPI is due later on Tuesday and renewed Iran-linked strikes raise risk-off pressure on the Australian dollar.
The Australian dollar weakened against the US dollar in early Asian trading, with AUD/USD sliding to around 0.6940.
FXStreet said renewed Middle East tensions, including reports that the US Central Command launched fresh strikes against Iran and that Iran’s IRGC responded with retaliatory attacks involving drones and missiles across the region, have weighed on riskier assets like the AUD.
Traders are also looking ahead to the release of US Consumer Price Index inflation data due later on Tuesday, a catalyst that could further influence USD demand.
On the other side of the balance, FXStreet noted that hawkish comments from the Reserve Bank of Australia could help limit losses. RBA Assistant Governor Sarah Hunter said the board will act as needed to return inflation to target, and Australia’s policy rate is 4.35% after three 25 basis point hikes this year.