AUD/USD extends losses to one-month lows sub-0.6400 with risk appetite subdued

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • The Aussie Dollar trades lower on Monday with fears of a regional war in the Middle East gripping markets.

  • The US Dollar holds gains as the market awaits Iran's response to the US attack.

  • Positive Australian business activity data has failed to support the AUD.

The risk-sensitive Australian Dollar is one of the worst performers among major currencies on Monday. The pair extended its reversal from last week's highs at 0.6550 to one-month lows right below 0.6400, with investors holding their breath after the US attack to Iran.

The Aussie extended losses for the third consecutive day on Monday, with investors wary of risk, awaiting a potential response from Tehran to the massive bombings of key energy sites, which, according to US President Trump, have devastated Iran’s nuclear program.

Tehran vowed a response, and a spokesperson from Iran’s army promised severe consequences to the US. So far, however, US interest in the region has not been attacked, and Iran has limited its retaliation with new missile strikes at Israel.

Australian business activity improves

Earlier today, Australian Preliminary S&P Global PMI figures revealed that business activity improved in June, boosted mainly by the services sector. The impact on the AUD, however, was minimal, with geopolitical tensions getting all the focus.

In the US on Friday, Fed Governor Christopher Waller rattled markets and put the bank’s wait-and-see stance into question as he campaigned for a rate cut in July. Chairman Powell will surely be questioned about this at his Monetary Policy Report to Congress, due on Tuesday and Wednesday.

The highlight today will be the US  preliminary S&P Global PMI, which is expected to show some slowdown in both the manufacturing and services sectors, but still at levels consistent with growth.

* 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.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
EUR/USD finds temporary support near 1.1400 ahead of Eurozone HICP, US NFP dataThe EUR/USD pair attracts some bids near the round level of 1.1400 during the Asian trading session on Thursday.
Author  FXStreet
1 hour ago
The EUR/USD pair attracts some bids near the round level of 1.1400 during the Asian trading session on Thursday.
placeholder
Australian Dollar holds ground following release of Retail Sales, China’s PMI dataThe Australian Dollar (AUD) appreciates on Thursday, halting its five-day losing streak.
Author  FXStreet
4 hours ago
The Australian Dollar (AUD) appreciates on Thursday, halting its five-day losing streak.
placeholder
Japanese Yen rebounds from multi-month low against USD ahead of BoJ decisionThe Japanese Yen (JPY) edges higher against a softer US Dollar (USD) during the Asian session on Thursday and recovers a part of the previous day's slide to its lowest level since early April.
Author  FXStreet
4 hours ago
The Japanese Yen (JPY) edges higher against a softer US Dollar (USD) during the Asian session on Thursday and recovers a part of the previous day's slide to its lowest level since early April.
placeholder
US Dollar Index trades near 100.00, inches lower ahead of PCE inflation dataThe US Dollar Index (DXY) is halting its five-day winning streak and trading around 99.80 during the Asian hours on Thursday.
Author  FXStreet
4 hours ago
The US Dollar Index (DXY) is halting its five-day winning streak and trading around 99.80 during the Asian hours on Thursday.
placeholder
Forex Today: GDP releases from major economies, BoC and Fed rate decisions to ramp up volatilityFinancial markets turn relatively quiet early Wednesday as investors gear up for key events.
Author  FXStreet
22 hours ago
Financial markets turn relatively quiet early Wednesday as investors gear up for key events.