AUD Surges Past 0.7 as Middle East Tensions Ease

The Australian Dollar (AUD) is trading at around 0.7000 against the US Dollar (USD), up 0.33% on Monday, as a weaker Greenback and improving expectations for Australian monetary policy support the currency.

The USD is weakening due to renewed diplomatic efforts between the United States and Iran, reducing demand for safe-haven assets, while lower oil prices are also easing US inflation concerns.

The AUD continues to draw support from Australia's strong June employment report, reinforcing expectations that the Reserve Bank of Australia (RBA) could deliver another interest rate hike.

Investors are now awaiting the June and second-quarter inflation reports, which will determine the extent of the central bank's next policy tightening move.