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AUD/USD holds near 0.7030 ahead of US Nonfarm Payrolls
FXStreet notes the pair is pressured by rising safe-haven demand for the US dollar, tied to renewed Iran-related shipping risks and a crude oil jump that revives US inflation rate-hike expectations.
The Australian dollar steadied against the US dollar in the Asian session, with AUD/USD trading around 0.7030 to 0.7025 as investors stayed sidelined ahead of the closely watched US monthly jobs report, according to FXStreet.
FXStreet said optimism for a US-Iran peace deal has faded after reports Iran is considering a plan to ban US and Israeli vessels from transiting the Strait of Hormuz, with other nations required to pay compensation first. That backdrop has led traders to price in a higher geopolitical risk premium, supporting the safe-haven USD and limiting upside for AUD/USD.
Additional pressure came from reports that Iran’s Houthi allies struck a Saudi tanker in the Red Sea, raising concerns about energy supply disruptions. FXStreet linked the resulting overnight crude oil spike to revived inflation fears, which in turn bolstered expectations of a US Federal Reserve rate hike and supported elevated US Treasury yields.
Despite this, FXStreet said USD strength has been hesitant, with traders looking to US Nonfarm Payrolls for direction on the Fed’s next policy steps. The article also flagged attention on the Reserve Bank of Australia’s meeting next week and suggested the pair’s near-term technical picture remains range-bound, holding above the 200-day SMA and capped by the 100-day SMA.
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