AUD/USD attracts some sellers below 0.6450 as US strikes Iran’s nuclear sites
AUD/USD weakens to around 0.6440 in Monday’s early Asian session.
US strikes Iran’s nuclear sites, risking wider war in the Middle East.
Australia's S&P Global Manufacturing PMI arrived at 51.0 in June, Services PMI improved to 51.3.
The AUD/USD pair attracts some sellers to near 0.6440 during the early Asian session on Monday. The US Dollar (USD) edges higher amid the rising tensions in the Middle East after the United States (US) carried out airstrikes on three nuclear sites in Iran over the weekend.
US President Donald Trump on Saturday said the US had attacked three key nuclear facilities in the Iranian regime, Fordo, Natanz and Isfahan. US Navy submarines also launched more than 30 Tomahawk missiles into Iran, according to two defense officials. Investors expected US involvement would cause a stock market selloff and a possible bid for the Greenback and other safe-haven assets, but uncertainty remained.
Federal Reserve (Fed) governor Christopher Waller said on Friday that the US central bank could start cutting interest rates as soon as next month, signaling flexibility amid global economic uncertainty and rising geopolitical risks. These dovish comments could weigh on the Greenback and might help limit the pair’s losses in the near term.
On the Aussie front, data released by S&P Global on Monday showed that the preliminary reading of Australia's S&P Global Manufacturing Purchasing Managers Index (PMI) came in at 51.0 in June versus 51.0 prior. Meanwhile, the Services PMI improved to 51.3 in June from the previous reading of 50.6, while the Composite PMI rose to 51.2 in June versus 50.5 prior.
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