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Australian dollar steadies near 0.7050 as USD demand revives

AUD/USD is holding near its highest level since June 17, with USD support linked to Middle East risk while traders await US employment data.

Reported · Written up by our desk · Major Pairs

The Australian dollar is consolidating near 0.7050, after struggling to break above the 100-day simple moving average barrier in the mid-0.7000s, and it is sitting close to the highest level since June 17, according to FXStreet.

FXStreet said spot trading was little changed after China’s Services PMI release, while supportive factors for near-term AUD gains are being weighed against geopolitical risk tied to Iran rejecting recent US claims about the Strait of Hormuz. That risk premium is helping lift demand for the safe-haven US dollar, a headwind for AUD/USD.

At the same time, FXStreet noted that hopes for a diplomatic resolution to end a five-month-old US-Iran war have weighed on crude oil, which fell to a nearly four-week low. The move has eased inflation concerns and led traders to scale back expectations for additional US tightening, potentially limiting how aggressively USD bulls can push.

Looking ahead, FXStreet pointed to the US economic calendar, including the ADP report on private-sector employment and the ISM Services PMI, along with FOMC member speeches. The report highlighted that attention is centered on Friday’s Nonfarm Payrolls release, which is expected to drive USD demand and influence the AUD/USD pair later in the North American session.

Latest closeWTI crude $75.32 ▼6.2%

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