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Australian dollar slips in gains near 0.7010 as US-Iran tensions rise
AUD/USD hovered around 0.7010 in Asian trading, with analysts pointing to the escalation of US strikes and upcoming Australian employment data as key drivers.
The Australian dollar edged higher in early Asian trading, with AUD/USD drifting toward 0.7010, but upside looked capped as US-Iran tensions escalated, FXStreet reported.
The outlet cited CENTCOM statements that the US completed additional strikes against Iran after President Donald Trump warned Tehran would pay for the deaths of three American soldiers. Iranian state media reported explosions in southern Iran, while Kuwait said its air defenses were activated against Iranian missile and drone attacks.
FXStreet said the broader risk backdrop could weigh on higher beta currencies like the AUD versus the US dollar in the near term. The report also noted that investors often reassess risk appetite as Middle East developments intensify.
Looking ahead, FXStreet highlighted the Australian employment report later this week as a focal point, alongside the Reserve Bank of Australia policy path. It referenced the RBA holding its Official Cash Rate at 4.35% in June, and added that AUD direction is closely linked to the interest-rate differential and local growth and inflation expectations.