AUD Bulls Hold Firm as Iran Sanctions Loom

The Australian Dollar (AUD) is holding near its June highs above 0.7150 against the US Dollar (USD), as market participants await the potential re-imposition of sanctions on Iran by the United States.

This resilience reflects a combination of firm commodity prices, improved risk sentiment, and expectations that the Reserve Bank of Australia (RBA) may maintain a hawkish stance.

The AUD/USD pair has been supported by strong iron ore and coal prices, Australia's key exports, which continue to underpin the country's terms of trade.

Geopolitical tensions have added uncertainty to global markets, particularly with regards to Iran sanctions. While this typically boosts safe-haven demand for the USD, its impact on the AUD has been muted so far.