AUD/USD is making progress, reaching approximately 0.7155 during the early hours of Thursday’s Asian session. Trump stated that there is “no time frame” for the conflict with Iran. In April, Australian preliminary PMIs returned to a state of expansion. The AUD/USD pair is showing strength around 0.7155 in the early hours of the Asian session on Thursday. The extension of a ceasefire with Iran by US President Donald Trump rekindles risk appetites, bolstering the Australian Dollar in its performance against the US Dollar. The initial assessment of the S&P Global Purchasing Managers Index is scheduled for release later on Thursday.
US President Donald Trump announced on Tuesday that the United States is prolonging the ceasefire with Iran at the request of Pakistan while he anticipates a consolidated proposal from Iran. This development alleviates concerns regarding a potential resurgence of conflict that had driven energy prices significantly upward. Nevertheless, tensions persist as Tehran maintains strict control over the Strait of Hormuz, overseeing the passage through this crucial trade route and engaging in hostile actions against vessels.
The speaker of the Iranian parliament and chief negotiator, Mohammad Bagher Ghalibaf, stated that reopening the Strait of Hormuz would be “impossible” as long as the US and Israel continue their “flagrant” violations of the ceasefire, which includes the US naval blockade. Indicators of an extended conflict in the Middle East may strengthen a safe-haven currency like the Greenback, potentially posing challenges for the pair.
Data released by S&P Global on Thursday indicated that the preliminary reading of Australia’s S&P Global Manufacturing Purchasing Managers Index increased to 51.0 in April, up from 49.8 in March. Meanwhile, Australia’s S&P Global Services PMI increased to 50.3 in April from the earlier figure of 46.3, while the Composite PMI improved to 50.1 in April compared to 46.6 previously.