Australian Dollar receives support after Trump extends ceasefire with Iran
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AUD/USD strengthens after Trump extends Iran ceasefire, easing Middle East escalation fears.
US blockade on Iranian vessels persists after the second round of US-Iran peace talks collapsed.
Retail Sales rose 1.7% MoM in March, accelerating from February’s 0.7% increase.
AUD/USD pares its recent losses from the previous day, trading around 0.7160 during the Asian hours on Wednesday. The risk-sensitive pair advances as the Australian Dollar (AUD) strengthens after US President Donald Trump extended the current ceasefire with Iran, easing fears of further escalation in the Middle East. Australia’s Westpac Leading Index for March will be eyed later in the day.
Bloomberg reported on Wednesday that President Trump will extend the ceasefire with Iran until negotiations between the two sides make progress. Trump’s statement marked a sharp shift in tone from earlier in the day, when he said, “I expect to be bombing” if Iran failed to meet his demands, adding the military was “raring to go.”
Nevertheless, the US blockade on Iranian vessels remains in place as plans for a second round of US-Iran peace talks collapsed. Reports indicated that Vice President JD Vance canceled a planned visit to Islamabad for negotiations after Tehran informed Washington via Pakistan that it would not attend the meeting.
However, the AUD/USD pair faced headwinds as the US Dollar (USD) gained support following stronger-than-expected US Retail Sales data released on Tuesday. The US Census Bureau reported that Retail Sales increased 1.7% month-over-month (MoM) in March, compared to the 0.7% rise (revised from 0.6%) recorded in February. The figure exceeded market expectations of 1.4%. On a YoY basis, Retail Sales rose 4.0% in March, matching February’s reading.
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