AUD Weakens Against USD Amid Geopolitical Tensions and Weaker US Jobs Data
The Australian Dollar (AUD) weakened against the US Dollar (USD) on Monday, trading around 0.7060 during Asian hours. The AUD/USD pair held onto losses as safe-haven demand for the USD remained strong due to ongoing geopolitical tensions between the United States and Iran.
The conflict has intensified in recent days, with military engagements and strategic pressure surrounding the Strait of Hormuz causing market caution. Although Iranian officials reported progress in negotiations regarding the management of the strait, the risk-averse sentiment persisted.
Weaker-than-expected US employment data further supported the USD, as Nonfarm Payrolls unexpectedly dropped by 23,000 in July. The sharp downward revisions to previous months highlighted weakening labor market conditions, dampening expectations for a near-term Federal Reserve (Fed) rate hike.