Australian Dollar advances to 0.7000 as Middle East de-escalation weighs on the USD
- AUD/USD rises around 0.33% on Monday, trading near 0.7000 at the time of writing.
- Hopes for a de-escalation between the US and Iran weigh on the US Dollar and support risk-sensitive assets.
- Investors now turn their attention to this week's Fed decision and upcoming Australian inflation data.
AUD/USD trades around 0.7000 on Monday at the time of writing, up 0.33% on the day, supported by a weaker US Dollar (USD) as geopolitical tensions in the Middle East show signs of easing. The pair also benefits from improving expectations for Australian monetary policy, while traders remain cautious ahead of this week's Federal Reserve (Fed) monetary policy meeting.
The US Dollar weakens following reports suggesting renewed diplomatic efforts between the United States (US) and Iran, reducing demand for safe-haven assets. Lower Oil prices are also helping to ease US inflation concerns, limiting support for the Greenback.
Meanwhile, the Australian Dollar (AUD) continues to draw support from Australia's strong June employment report, which reinforces expectations that the Reserve Bank of Australia (RBA) could deliver another interest rate hike. Investors are now awaiting the June and second-quarter inflation reports, which could determine the extent of the central bank's next policy tightening move.
Despite the supportive backdrop for the Australian currency, market participants remain reluctant to take significant positions ahead of the Fed's policy decision. The US central bank is widely expected to leave interest rates unchanged this week, although investors will closely monitor any guidance on the timing of future monetary policy moves.
Developments in the Middle East also remain an important market driver. While the current pause between Washington and Tehran has improved market sentiment, risks to global energy supply persist, particularly after the Houthis claimed responsibility for attacks on Saudi facilities along the Red Sea.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.25% | -0.02% | -0.18% | 0.09% | -0.31% | -0.15% | -0.43% | |
| EUR | 0.25% | 0.20% | 0.04% | 0.33% | -0.07% | 0.12% | -0.20% | |
| GBP | 0.02% | -0.20% | -0.13% | 0.14% | -0.26% | -0.11% | -0.38% | |
| JPY | 0.18% | -0.04% | 0.13% | 0.25% | -0.13% | 0.02% | -0.24% | |
| CAD | -0.09% | -0.33% | -0.14% | -0.25% | -0.39% | -0.23% | -0.51% | |
| AUD | 0.31% | 0.07% | 0.26% | 0.13% | 0.39% | 0.18% | -0.12% | |
| NZD | 0.15% | -0.12% | 0.11% | -0.02% | 0.23% | -0.18% | -0.31% | |
| CHF | 0.43% | 0.20% | 0.38% | 0.24% | 0.51% | 0.12% | 0.31% |
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
Ghiles Guezout
FXStreet
Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.
