AUD/USD declines to approximately 0.7165 during the Asian session on Tuesday. The US military has reported conducting new strikes in southern Iran. Traders prepare for the upcoming release of Australia’s April CPI inflation report, scheduled for Wednesday. The AUD/USD pair is currently positioned in negative territory, trading around 0.7165 during the Asian trading hours on Tuesday. The Australian Dollar experiences a decline against the US Dollar as renewed tensions between the US and Iran exert pressure on risk-sensitive currencies.
The US Central Command announced on Monday that it has initiated new strikes on southern Iran, focusing on Iranian missile sites and vessels attempting to deploy mines, according to reports. The US military stated that the strikes were executed in “self-defence” and aimed “to protect our troops from threats posed by Iranian forces.” The attacks occurred as Iranian foreign ministry spokesman Esmail Baqai indicated that some progress has been achieved in discussions with the US; however, a resolution to conclude the conflict “is not imminent.” Uncertainty surrounding the US-Iran peace negotiations may strengthen a safe-haven currency like the Greenback, potentially leading to a decline in the pair in the near term.
Australia’s Consumer Price Index inflation report is set to be released on Wednesday. The headline CPI is anticipated to increase by 4.4% year-over-year in April, down from 4.6% in March. In April, the Consumer Price Index is anticipated to rise by 0.6% on a monthly basis, compared to the previous increase of 1.1%. Any indications of rising inflation in Australia may strengthen the Australian dollar against the US dollar.