AUD Weakened by Safe-Haven Demand Amid Geopolitical Tensions
The Australian Dollar (AUD) has weakened as safe-haven demand boosts the US Dollar (USD), causing the AUD/USD pair to trade around 0.7060 during Asian hours on Monday.
Geopolitical tensions surrounding the ongoing United States (US)-Iran conflict are driving market caution, with Iranian officials noting progress in Oman-mediated negotiations regarding the management of the Strait of Hormuz.
Weaker-than-expected US employment data has dampened expectations for a near-term Federal Reserve (Fed) rate hike, with Nonfarm Payrolls (NFP) unexpectedly dropping by 23,000 in July.
Investors are now focused on upcoming inflation reports for further clues on monetary policy, while traders look ahead to the Reserve Bank of Australia’s (RBA) monetary policy decision on Tuesday, where a cash rate unchanged at 4.35% is widely expected.