AUD/USD extends the decline to 0.6485 in Monday’s early Asian session.
Heightened geopolitical tensions in the Middle East underpin the US Dollar and create a headwind for the pair.
China’s Retail Sales and Industrial Production will be in the spotlight on Monday.
The AUD/USD pair weakens to 0.6485 during the early Asian session on Monday. Escalating geopolitical tensions in the Middle East following an Israeli attack on Iran provide some support to the US Dollar (USD). Later on Monday, investors brace for the release of China’s May Retail Sales and Industrial Production for fresh impetus.
Israel started attacks on Iran on Friday, targeting nuclear facilities and missile factories and killing military leaders. Late Sunday, Iran launched a fresh attack on Israel, with an explosion seen in the coastal city of Haifa. Semi-official Iranian media outlet Mehr News reported on Sunday that the fourth phase of Iran’s operation against Israel has begun. Iranian officials underscored that they would “respond firmly to any adventurism” from Israel.
Amid the rising geopolitical tensions, investors ignored the upbeat US economic data released on Friday. The Michigan Consumer Sentiment Index jumped to 60.5 in June from 52.2 in the previous reading, the first improvement in six months. This reading came in better than the expectations.
Investors will keep an eye on China’s Retail Sales and Industrial Production for May, which are due later on Monday. If the reports show a stronger-than-expected outcome, this could lift the China-proxy Aussie, as China is a major trading partner of Australia.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
