AUD Holds Steady Amid Oil Surge as USD Firms

The Australian Dollar (AUD) holds steady despite the recent oil price surge. The US Dollar (USD) is firming across the board, pushing the AUD/USD pair down 0.36% to around 0.7030.

Oil prices have jumped over 3% after reports emerged that vessels linked to the US, Israel, and other countries Tehran considers hostile would be barred from the Strait of Hormuz under a proposed deal.

This move is unusual because commodity-linked currencies typically benefit from rising oil prices. However, the AUD trades on global growth, and a threat to a fifth of the world's oil flows poses a risk to economic growth.

The upcoming US Nonfarm Payrolls (NFP) report on Friday could further impact the USD direction and potentially leave the AUD squeezed from both sides.