AUD Falls as US-Iran Tensions Send Investors to Safe-Havens

The Australian Dollar fell by 0.29% against the US Dollar on Tuesday as tensions between the US and Iran escalated, driving investors towards the Greenback's safe-haven appeal.

The escalation of the conflict in the Middle East boosted the US Dollar due to its haven appeal, pushing the AUD/USD exchange rate down to 0.7146.

The situation has also sent oil prices plummeting as the US and Iran continue to trade attacks, with President Trump warning Tehran not to retaliate.

In economic data released on Tuesday, the JOLTS job openings for July rose to 7.27 million, below estimates, while the ISM Manufacturing PMI eased from 55.6 to 54.6 in August, also below forecasts but still indicating a healthy manufacturing sector.

The US Treasury yields have risen as energy prices soar due to the conflict, prompting investors to price in a nearly 72% chance of a 25-basis-point rate hike by the Federal Reserve.