AUD Slumps as Iran Sanctions Hit Global Risk Appetite

The Australian Dollar fell against the US Dollar on Monday as global risk appetite soured due to the imposition of sanctions on Iran-linked entities by the US Department of the Treasury.

The sanctions, announced on Monday, target five areas: digital assets, technology, gold, aviation, and shipping. US Treasury Secretary Scott Bessent emphasized that the US is giving a timeline to world leaders to cut ties with Iran, while President Trump plans to speak with countries about the matter.

In related news, the Chicago Fed's National Activity Index dipped to -0.08 from 0.06 in July, remaining near the trend level of 0 throughout the year.