The post AUD/USD pares Friday’s losses and returns above 0.6500 as risk aversion ebbs appeared on BitcoinEthereumNews.com.

The Aussie Dollar regains lost ground on a brighter market mood and the US Dollar’s weakness. Easing concerns about an escalation of the Middle East war is boosting risk-related currencies. Mixed data from China failed to provide any significant support to the AUD. The Australian Dollar is one of the stronger performers on Monday, favoured by an improving market sentiment and a weaker US Dollar. The pair is rallying about 0.45% so far today, returning to levels past 0.6500 as fears about the Middle East conflict ease. Iran and Israel have continued shelling each other for the fourth consecutive day, but fears that the conflict might escalate into a regional war have eased, and, so far, Iran has not threatened to block the Strait of Hormuz. This is a key gateway for oil traffic, and its closure might draw the US into the war. The comments from Iran’s Foreign Ministry announcing that the parliament is preparing a bill to leave the nuclear Non-Proliferation Treaty have not offset the moderately positive market sentiment.  Several countries have offered themselves to mediate in the conflict, including China and Russia, and Trump is pushing both countries to reach a deal, which feeds hopes that a peace agreement is possible. On the macroeconomic front, data from China has been mixed. The higher-than-expected CPI revealed that consumption is picking up in Australia’s main trading partner, and that is positive for the Aussie. Industrial production, however, slowed down beyond expectation, suggesting that the Chinese economy is not out of the woods yet. Australian Dollar FAQs One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron…

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Filed under: News - @ June 16, 2025 10:26 am