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AUD/USD slips below 0.7100 as Hormuz tensions lift the US dollar
The drop is tied to renewed Strait of Hormuz flare-ups, including a reported vessel strike that injured a crew member.
AUD/USD was trading just under 0.7100 on Tuesday, slipping from the two-month highs it reached on Monday, according to FXStreet.
FXStreet said the move was driven less by Australian data and more by geopolitics, as the US dollar regained some ground on a modest safe-haven bid tied to renewed tensions around the Strait of Hormuz.
The outlet pointed to remarks from Iran’s top negotiator and parliament speaker, Mohammad Bagher Qalibaf, saying the strait would stay closed until Washington meets terms of an interim deal signed in June, including lifting its naval blockade of Iranian ports and removing oil sanctions. FXStreet also noted that the memorandum of understanding expired on Monday, and US President Donald Trump said he is not seeking an extension.
FXStreet added that a UK Maritime Trade Operations report said a vessel was struck by an “unknown projectile” while transiting the Strait, damaging its engine room and injuring a crew member, while Trump said there are no talks scheduled with Iran and that the US naval blockade remains in full force.