AUD Falls as Iran Conflict Boosts USD Demand

The Australian Dollar fell by 0.29% against the US Dollar on Tuesday due to escalating tensions between the US and Iran, which boosted demand for the Greenback as a safe-haven asset.

Oil prices continued to drop despite US President Trump's warning that any Iranian retaliation would be met with severe consequences.

The US Treasury yields rose by over 4 basis points to 4.796%, driven by energy price increases and investors pricing in a nearly 72% chance of a 25-basis-point rate hike by the Federal Reserve, according to Prime Terminal.

Fed Governor Michael Barr stated that if inflation doesn't moderate soon, he would be prepared to raise rates amid a 'stable' labor market and low Unemployment Rate.