Key Moments
- AUD/USD retreats toward 0.7165 during Tuesday’s Asian session, trading in negative territory.
- US Central Command reports new “self-defense” strikes on southern Iran, pressuring risk-sensitive currencies.
- Markets focus on Australia’s April CPI release on Wednesday, with headline inflation expected at 4.4% YoY.
Risk-Off Mood Weighs on AUD/USD
The AUD/USD pair trades lower around 0.7165 in Asian dealings on Tuesday, with the Australian Dollar losing ground against the US Dollar. Renewed geopolitical tensions are dampening appetite for risk-linked currencies and providing support to the Greenback.
According to the US Central Command, US forces carried out fresh strikes on southern Iran on Monday, targeting Iranian missile sites and boats allegedly attempting to deploy mines, as reported by the BBC. The US military stated that the operations were conducted in “self-defense” and were intended “to protect our troops from threats posed by Iranian forces.”
These actions follow remarks from Iranian foreign ministry spokesman Esmail Baqai, who said that while some progress had been achieved in talks with the US, a deal to resolve the conflict “is not imminent.” Persistent uncertainty around US-Iran negotiations is supporting demand for safe-haven assets such as the US Dollar and could keep AUD/USD under pressure in the near term.
Focus Turns to Australia’s April Inflation Data
Attention is now shifting to Australia’s Consumer Price Index (CPI) release scheduled for Wednesday. The headline CPI for April is expected to show a 4.4% year-on-year increase, compared with 4.6% in March. On a monthly basis, inflation is projected to rise 0.6% in April, after a 1.1% gain previously.
Stronger-than-anticipated inflation data could bolster expectations for a more hawkish stance from the Reserve Bank of Australia and may provide support for the Australian Dollar against the US Dollar.
| Australia CPI Data | Previous | Expected |
|---|---|---|
| Headline CPI YoY (April) | 4.6% | 4.4% |
| CPI MoM (April) | 1.1% | 0.6% |





