Forex
Home›Forex›Major Pairs›AUD/USD nears 0.7050 as Trump pauses Iran strikes
AUD/USD nears 0.7050 as Trump pauses Iran strikes
AUD/USD rose to around 0.7040 as risk sentiment improved, while markets continue to price an additional RBA rate hike to 4.6%.
FXStreet reports that AUD/USD gained in early Asian trading, moving toward 0.7050, as risk sentiment improved after news that US President Donald Trump has paused planned military strikes against Iran.
The outlet cited Bloomberg reporting that Trump cancelled the strikes on expectations of progress on Iran’s nuclear program and a full reopening of the Strait of Hormuz. Traders are also awaiting China’s Manufacturing Purchasing Managers Index report due later in the day.
FXStreet said any positive US-Iran developments could support riskier assets such as the Australian dollar, but uncertainty remains elevated after Iranian officials said Tehran’s request for a pause claim was false and that forces remain on high alert.
On monetary policy, the report noted that the Reserve Bank of Australia’s hawkish tone has kept markets fully pricing one more rate hike, which would take Australia’s Official Cash Rate to 4.6%, as RBA Governor Michele Bullock said underlying inflation is still too high.