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The AUD/USD pair rose to 0.7025 during Asian trading hours on Thursday as optimism over the U.S.-Iran peace deal boosted risk appetite. The agreement, signed by former U.S. President Donald Trump, eased geopolitical tensions in the Middle East, supporting riskier assets like the Australian Dollar. Traders are monitoring how the deal impacts global markets, particularly the USD's strength against majors like the JPY and EUR.
The move highlights the AUD's sensitivity to geopolitical developments and risk sentiment. A stable U.S.-Iran relationship could reduce volatility in oil markets, indirectly benefiting the AUD. However, the pair's near-term trajectory will depend on broader economic data and central bank policies, including the Reserve Bank of Australia's (RBA) stance on interest rates.
For traders, the AUD/USD breakout above 0.7000 may signal a shift in market sentiment. Key levels to watch include 0.7050 (resistance) and 0.6950 (support). Investors should also track upcoming U.S. employment data and RBA policy statements for further direction.
