Australian Dollar Remains Uncertain Amid US-Iran Crisis and Higher Treasury Yields

The Australian Dollar has started the new trading week in an uncertain position, hovering just above the key 0.7000 region against the US Dollar.

This lack of clear direction comes as investors assess the latest headlines from the US-Iran crisis and the continuation of higher US treasury yields.

The Reserve Bank of Australia's (RBA) hawkish policy bias and elevated domestic inflation are also supporting the Australian Dollar, despite a slowing economy.

Australia's economy is still on solid footing, supported by domestic demand and positive economic growth, but business activity has lost some momentum with cooling Purchasing Managers' Index (PMI) for Manufacturing and Services.