AUD Stalls Gains Amid US-Iran Tensions Ahead of NFP Report
The Australian Dollar (AUD) is consolidating its gains as traders await the release of the US Nonfarm Payrolls (NFP) report. The pair has steadied around the 0.7030-0.7025 region during the Asian session on Friday, with prices pausing after a previous day's retracement slide from the highest level since June 17.
Optimism over a potential US-Iran peace deal has faded amid reports Iran is reviewing a plan to ban US and Israeli vessels from the Strait of Hormuz. This development has prompted traders to price in the geopolitical risk premium, supporting the safe-haven US Dollar (USD) and capping the AUD/USD pair.
Iran's Houthi allies in Yemen struck a Saudi tanker in the Red Sea, fueling concerns about energy supply disruptions through another key route. This led to an overnight spike in crude oil prices and revives inflation fears, bolstering bets for a rate hike by the US Federal Reserve (Fed).