AUD/USD softens to near 0.7180. Wednesday’s early Asian session. Australian GDP expanded by 0.3% quarter-on-quarter in the first quarter of 2026, falling short of expectations. US forces have executed strikes following an attack by Iran, according to reports. The AUD/USD pair experiences a decline, reaching approximately 0.7180 in the early Asian session on Wednesday. The Australian Dollar weakens against the US Dollar following a downbeat domestic Gross Domestic Product report. Traders will pay close attention to the US employment data for May, set to be released on Friday.
Data released by the Australian Bureau of Statistics on Wednesday indicated that the Australian economy expanded by 0.3% quarter-on-quarter in the first quarter of 2026, a deceleration from the 0.8% growth observed in the fourth quarter. This reading came in below the anticipated 0.5% expansion. Meanwhile, the annual first-quarter GDP expanded by 2.5%, compared with the 2.6% growth in Q4, falling short of the market consensus of a 2.7% increase. The Aussie attracts some sellers in an immediate reaction to the downbeat economic data, as it might prompt markets to expect a more dovish stance from the Reserve Bank of Australia.
In other developments, China’s Services Purchasing Managers’ Index rose to 54.4 in May, an increase from the previous reading of 52.6, as reported. This figure exceeded market expectations of 52.3. Broader geopolitical uncertainties may maintain a state of vigilance among traders and support the demand for a safe-haven currency like the Greenback. The United States Central Command announced on Tuesday that it successfully intercepted and thwarted a series of Iranian missile and drone attacks aimed at regional neighbours, including Kuwait and Bahrain. Additionally, CENTCOM conducted self-defence strikes on Iran’s Qeshm Island, according to reports.