AUD Strengthens as Mideast Tensions Ease

Australia's currency, the Australian Dollar (AUD), has strengthened against its US counterpart, the USD, in recent days as tensions between Iran and the United States have eased.

The AUD/USD pair rose to near 0.7000 during Asian hours on Monday, following a sharp drop in oil prices and the US decision not to strike Iran over the weekend.

This move came after 13 days of escalating conflict between the two countries, but market participants remain cautious due to potential supply disruptions from Iran-backed Houthis in Yemen.

Investors are also bracing for the upcoming Federal Reserve policy meeting, where a rate hike is widely expected to be held steady on Wednesday before resuming in September.