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Australian dollar slips as risk-off mood weighs on AUD

AUD fell 0.32% to around 0.6930 per US dollar as S&P 500 futures eased and renewed US-Iran tensions pushed investors toward safe havens.

Reported · Written up by our desk · Major Pairs

The Australian dollar weakened versus major peers in early European trading, down 0.32% to about 0.6930 against the US dollar, reflecting a shift to a more risk-averse market mood, FXStreet reported.

FXStreet attributed the pressure on AUD to intensifying aggression between the United States and Iran, which has also lifted oil prices. The outlook for higher energy costs has encouraged investors to favor safe assets over riskier positions, contributing to the broader squeeze on the antipodean currency.

At the same time, FXStreet pointed to caution ahead of upcoming US catalysts, including June consumer price index data and Federal Reserve Chair Kevin Warsh’s testimony, both scheduled for Tuesday. The outlet cited expectations for US core CPI of 2.9% year over year, with a 0.3% increase on a monthly basis.

FXStreet also noted that US inflation data could influence Fed rate expectations, pointing to recent FOMC minutes describing high inflation as the “dominant risk.” It added that the US Dollar Index rose 0.15% to around 101.15 as markets leaned further toward the safe-haven US dollar.

Latest closeDollar index 100.97 ▲0.0%

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