Markets Weaken Again, But Aussie Still On Fire!
The Australian Dollar (AUD) strengthened against the US Dollar (USD) on Wednesday (18/06) after recording a decline of more than 0.50% in the previous session. However, the AUD/USD pair weakened due to weakening risk appetite amid rising tensions in the Middle East. Israel and Iran continued their cycle of retaliation. However, Tehran has reportedly urged several countries, including Oman, Qatar, and Saudi Arabia, to urge US President Donald Trump to immediately declare a ceasefire.
The US dollar may strengthen again due to increased demand for safe havens amid rising geopolitical tensions in the Middle East. On Tuesday, US President Donald Trump posted on his social media platform, calling for Iran's "unconditional surrender." Investors are worried that the United States will participate in the Israel-Iran conflict.
The G7 leaders issued a joint statement on Monday: "We have consistently affirmed that Iran will never have a nuclear weapon." The leaders emphasized that resolving the Iran crisis could lead to a broader de-escalation of hostilities in the region.
Upcoming Australian employment data, including Employment Change and Unemployment Rate, are due later this week. The jobs figures are likely to provide fresh impetus to the domestic economy and shape expectations for the Reserve Bank of Australia (RBA) policy outlook.
Source: FXStreet