Forex
AUD/USD Falls as US-Iran Tensions Boost Dollar Demand
The Australian dollar has been under pressure due to escalating US-Iran tensions, which have boosted demand for the US dollar as a safe-haven currency.
Market expectations of a September rate hike by the Federal Reserve have also risen to approximately 72%, further suppressing the AUD/USD pair.
The recent decline in the AUD/USD has been driven by risk-off sentiment, which has pushed capital flows from risk assets back into US dollar-denominated assets.
The conflict between the US and Iran has led to higher energy prices, which have intensified concerns about US inflation stickiness and contributed to rising US Treasury yields.