AUD/USD Weakens, Supported by These 2 Factors!
The AUD/USD pair fell to around 0.7150 during the Asian session on Thursday (May 21), influenced by disappointing Australian economic data and safe-haven flows supporting the US dollar. Investors are awaiting the US Purchasing Managers Index (PMI) data for May for further guidance.
S&P Global reported that Australia's manufacturing PMI declined to 50.3 in May from 51.3 in April. The services PMI also weakened to 47.7 from 50.7, while the composite PMI fell to 47.8 from 50.4 previously, indicating a slowdown in domestic economic activity.
Middle East tensions and uncertainty surrounding US-Iran talks added pressure on the AUD. The US dollar has been gaining demand as a safe-haven amid heightened geopolitical risks.
US President Donald Trump stated that negotiations with Iran are in the "final stages" and warned of a possible attack if a deal fails. These statements continue to cause volatility in global currency markets.
Iranian President Masoud Pezeshkian asserted that Tehran will not give in. "Forcing Iran to surrender through pressure is a mere illusion," he wrote in X, indicating Iran's firm stance in negotiations.
The market now remains vigilant regarding the latest developments in the Middle East and global economic data, which will be factors in determining the direction of the AUD/USD in the short term. (asd)
Source: Newsmaker.id