AUD/USD Takes Hit as US Dollar Recovers from Two-Day Decline

The Australian Dollar has come under pressure as the US Dollar steadies after two consecutive days of losses.

At the time of writing, the AUD/USD pair is trading around 0.7036, down roughly 0.32% on the day.

Initial Jobless Claims in the US rose only slightly to 199K from 198K and came in below expectations of 202K, offering some support to the Greenback.

The market is also watching developments surrounding the Strait of Hormuz, where Iran and Oman are close to finalizing an agreement that would establish a temporary shipping route through the waterway. The prospect of an agreement has improved near-term market sentiment, but the broader backdrop remains fragile, keeping some defensive demand for the US Dollar alive.