Forex
AUD/USD Holds Steady Amid Fed Hike Bets and Iran Tensions
The AUD/USD pair has started the week on a positive note, stabilizing above 0.7150 despite some volatility.
Friday's retracement slide from its highest level since mid-May was momentarily halted at the start of the new week as the US Dollar (USD) traded with a mild negative bias below a two-week high.
The key driver behind this support is the revival of bets for an interest rate hike by the US Federal Reserve (Fed) in September, along with escalating US-Iran tensions.
However, momentum is not strong, and the Relative Strength Index (RSI) hovers around a neutral 46. The Moving Average Convergence Divergence (MACD) indicator has slipped slightly into negative territory, suggesting moderating upside pressure.