Aussie Steps on Gas, US Dollar Weakens on Regional Conflicts
The Australian Dollar (AUD) retraced its recent losses on Friday. The AUD/USD pair remained strong after the release of the interest rate decision from China. However, the pair’s gains could be limited amid weaker risk sentiment amid rising Middle East tensions.
The People’s Bank of China (PBOC) decided to leave the Loan Prime Rate (LPR) unchanged on Friday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively.
US intelligence agencies believe that Iran has not yet decided whether to pursue nuclear weapons, despite having developed a large stockpile of enriched uranium needed to make a bomb. However, Iran would likely switch to bomb production if the US military strikes Iran’s Fordo uranium enrichment site, or if Israel assassinates Iran’s supreme leader, a senior US intelligence source added, The New York Times.
The US Dollar (USD) found support from rising safe-haven demand amid growing concerns over potential US involvement in the Israel-Iran air war. The Israel-Iran conflict has entered its seventh day as both countries continued to launch airstrikes on Thursday. White House spokeswoman Karoline Leavitt noted that US President Donald Trump will decide within two weeks whether to attack Iran.
The Australian Bureau of Statistics reported on Thursday that Employment Change fell by 2.5K in May compared to a rise of 87.6K in April (revised from 89K) and the consensus estimate of a rise of 25K. Furthermore, the Unemployment Rate was steady at 4.1% in May, as expected.
Source: FXStreet
