Australian Dollar drops amid Israel-Iran conflict, eyes on US NFP data
The post Australian Dollar drops amid Israel-Iran conflict, eyes on US NFP data appeared on BitcoinEthereumNews.com.
The Australian Dollar losses steam after failing to hold gains above 0.6900. Geopolitical tensions between Israel and Iran spur safe-haven demand for the US Dollar. US unemployment claims rising above estimates, and strong ISM Services PMI data reduces chances of further aggressive Fed rate cuts. The Australian Dollar (AUD) loses more than 0.50% against the US Dollar on Thursday, dropping after hitting a daily high of 0.6888 amid concerns that the Israel-Iran war could broaden in the Middle East. This spurred flows toward the Greenback, which briefly topped 102.00 via the US Dollar Index (DXY), but mixed US data capped its gains. The AUD/USD trades at 0.6844. A risk-off impulse is weighing on the Aussie Dollar. Discussions between the US and Israel continued on how to retaliate against Iran. A headline that US President Joe Biden discussed with Israel a possible attack on Iran’s oil facilities dented appetite for riskier assets like the AUD. Data revealed by the US Department of Labor showed that the number of people filing for unemployment benefits increased above estimates. Meanwhile, business activity data in the services sectors, revealed by the Institute for Supply Management (ISM) exceeded estimates in September, portraying a robust economy, which could erase the chances for a further 50 basis points (bps) of rate cuts by the Federal Reserve (Fed). In the meantime, the Balance of Trade in Australia printed a surplus in August, which exceeded estimates of A$5.5 billion, came at A$5.64 billion, up from July’s A$5.636 billion. Besides that, Australia’s Judo Bank Services Purchasing Managers Index (PMI) decelerates from 52.5 to 50.5 in September. This could refrain the Reserve Bank of Australia (RBA) from adopting a hawkish stance amid concerns that the economy is cooling. Ahead in the calendar, the Australian economic docket will feature Home Loans and Investment…
Filed under: News - @ October 3, 2024 9:16 pm