AUD/USD rallies toward 0.7200 as Aussie gains on easing war fears
- AUD/USD advanced as traders welcomed signs of a modest de-escalation.
- Wall Street gains and softer geopolitical fears supported the Aussie.
- Focus now shifts to Australian inflation and the Fed meeting.
The Australian Dollar soars some 0.53% on Monday, with the Greenback staying firm amid uncertainty regarding the outcome of the US-Iran conflict as Washington reviews Tehran’s last proposal to end the war. At the time of writing, the AUD/USD trades at 0.7185 after bouncing off daily lows of 0.7125.
Aussie rises as Wall Street gains and key Fed meeting looms ahead
Market mood is positive as Wall Street finished Monday’s session modestly in the green while traders brace for the upcoming Federal Reserve’s monetary policy meeting. A slight de-escalation of the Middle East conflict was also cheered by investors awaiting the earnings releases of US mega-cap companies throughout the week.
Iran proposed a three-step negotiation process to Washington to end the conflict. The first step would be to end the war immediately and receive guarantees; the second would be the reopening of the Strait of Hormuz; and the third would be discussing nuclear issues.
Meanwhile, US President Donald Trump canceled his envoy’s trip to Pakistan, suggesting it would be a waste of time. Reuters reported that Trump is discussing Iran’s proposal with his top national security aides on Monday, after negotiations stalled last week when Iran failed to attend the talks.
The Federal Reserve monetary policy meeting, which begins on Tuesday and ends on April 29, will include the unveiling of the monetary policy statement and Fed Chair Jerome Powell’s last press conference as the US central bank’s chief.
Jerome Powell is expected to be asked about his future at the Fed. Although his tenure as the Chairman of the Board ends on May 15, his term at the Fed would end on January 31, 2028.
Ahead, Tuesday’s economic docket in Australia would be absent. Yet on Wednesday, traders will eye the release of inflation figures from the Australian Bureau of Statistics (ABS).
In the US, the economic docket will feature the ADP Employment Change 4-week average, housing data, and the Conference Board (CB) Consumer Confidence survey for April.
Australian Dollar Price This Month
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies this month. Australian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.44% | -2.30% | 0.38% | -2.07% | -3.98% | -2.70% | -1.78% | |
| EUR | 1.44% | -0.86% | 1.89% | -0.64% | -2.60% | -1.33% | -0.36% | |
| GBP | 2.30% | 0.86% | 2.76% | 0.21% | -1.73% | -0.45% | 0.52% | |
| JPY | -0.38% | -1.89% | -2.76% | -2.44% | -4.40% | -3.19% | -2.21% | |
| CAD | 2.07% | 0.64% | -0.21% | 2.44% | -2.02% | -0.78% | 0.30% | |
| AUD | 3.98% | 2.60% | 1.73% | 4.40% | 2.02% | 1.28% | 2.27% | |
| NZD | 2.70% | 1.33% | 0.45% | 3.19% | 0.78% | -1.28% | 1.00% | |
| CHF | 1.78% | 0.36% | -0.52% | 2.21% | -0.30% | -2.27% | -1.00% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
