AUD/USD Dips Below 0.7050 Amid US Dollar Gains

The AUD/USD pair edged lower during the Asian session on Thursday, moving away from its highest level since June 17. Spot prices currently trade just below 0.7050, but the downside potential seems limited.

Despite optimism over a potential US-Iran deal and the reopening of the Strait of Hormuz, the US Dollar (USD) gained some positive traction, snapping a two-day losing streak as bears awaited further developments surrounding the Middle East crisis.

This is seen as a key factor exerting pressure on the AUD/USD pair. Any meaningful decline seems elusive ahead of China's Trade Balance data and the crucial US Nonfarm Payrolls (NFP) report on Friday.