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The Australian Dollar edges lower as traders adopt caution amid the ongoing war between Israel and Iran. The AUD may regain ground due to optimism after Iran reportedly asked for an immediate ceasefire. Traders await the US Retail Sales data for May due on Tuesday. The Australian Dollar (AUD) declines against the US Dollar (USD) on Tuesday, retracing its recent gains registered in the previous session. The AUD/USD pair faces challenges as traders adopt caution amid ongoing geopolitical tensions. However, the risk-sensitive AUD/USD pair gained ground due to optimism after Iran reportedly asked many countries, including Oman, Qatar, and Saudi Arabia, to urge US President Donald Trump to use his influence on Israel for an immediate ceasefire, per Reuters. Moreover, risk sentiment improved as the Canadian Prime Minister Mark Carney had agreed with Trump that their two nations should try to wrap up a deal on tariffs within 30 days. Traders await Australia’s upcoming labor data this week, including Employment Change and Unemployment Rate, which are expected to offer fresh impetus on the strength of the domestic economy and shape expectations for the Reserve Bank of Australia’s (RBA) policy outlook. Australian Dollar declines as US Dollar edges higher due to risk aversion The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, is trading higher at around 98.20 at the time of writing. The US Retail Sales data for May will be eyed on Tuesday. The focus will shift to the Federal Reserve’s (Fed) interest rate decision, due on Wednesday. On Monday, President Trump called for the evacuation of Iran’s capital, Tehran, hours after urging the country’s leaders to accept a deal to limit its nuclear program, as Israel hinted that attacks would continue, per Bloomberg. Trump posted in a social media post,…

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Filed under: News - @ June 17, 2025 2:28 am