AUD/USD is currently consolidating near 0.7130 following a decline from its weekly peak of 0.7185. This week, the safe-haven USD has been supported by increasing geopolitical tensions. Foreign exchange analysts anticipate that the pair will fluctuate within the range of 0.7080 to 0.7180 in the upcoming weeks. The Australian Dollar posts marginal gains against the US Dollar on Friday, yet it remains close to 10-day lows of 0.7110, with attempts to rise capped below 0.7135 thus far.
A robust US Dollar, coupled with diminishing expectations for a swift peace agreement in Iran, is deterring speculative traders from engaging with the Australian dollar. Risk-sensitive assets such as the AUD are experiencing a downturn on Friday, amid escalating tensions in the Middle East. The President of the United States, Donald Trump, has called on Tehran to enter into a peace agreement, whereas Israel has indicated that it is awaiting a “US green light” to resume its military operations against Iran.
Tehran has issued a warning characterized by a “eye for an eye” stance, indicating that it will target oilfields in Gulf nations allied with the US should Iranian energy sites come under attack. In this context, attention will be focused on the conference led by US Defense Secretary Pete Hegseth and the Chair of the Joint Chiefs of Staff, Dan Caine, who are anticipated to elucidate the Operation Epic Fury against Iran on Friday at 08:00. From a broader viewpoint, the AUD/USD pair continues to oscillate within a range following a rejection at the 0.7220 level in mid-April.
Foreign exchange analysts anticipate that this trend will persist in the coming weeks: “In our most recent narrative from Monday (20 Apr, spot at 0.7130), we highlighted that the current price movements are likely part of a range-trading phase between 0.7060 and 0.7210.” Since that time, the AUD has exhibited relatively subdued trading activity. We maintain our expectation of range trading; however, a more confined range of 0.7080/0.7180 is anticipated to sufficiently encompass price movements for the time being.