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The AUD/USD pair rose by 0.70% during the North American session, trading at 0.7167 after rebounding from daily lows near 0.7150. This upward movement coincided with a decline in the US dollar amid a 60-day ceasefire extension between the US and Iran, which includes reopening the Strait of Hormuz. The deal reduced geopolitical tensions in the Gulf, easing pressure on oil markets and weakening the Greenback.
The ceasefire agreement is significant for forex markets as it lowers the risk of supply disruptions in the Strait of Hormuz, a critical oil transit chokepoint. A weaker USD supports the Australian dollar, which is sensitive to commodity prices and global risk appetite. Traders are now watching whether AUD/USD can break above the key 0.72 resistance level to confirm bullish momentum.
For Gulf investors, the outcome of this geopolitical development could influence regional trade dynamics and energy prices. The next 48 hours will be critical as traders assess the sustainability of the ceasefire and its impact on USD demand. A sustained break above 0.72 could trigger further gains, while a failure to hold above 0.7150 may reignite bearish sentiment.
