AUD/USD Slips Below 0.6450 as US Strikes Iran Nuclear Sites, Geopolitical Risks Mount

AUD/USD Drops to 0.6440 After US Launches Strikes on Iran

The AUD/USD pair fell to around 0.6440 during early Asian trading hours on Monday following dramatic geopolitical developments. The drop comes after the United States bombed three major Iranian nuclear facilities — Fordo, Natanz, and Isfahan — in a coordinated strike over the weekend, escalating the ongoing Middle East conflict.

US President Donald Trump confirmed the military action, stating that over 30 Tomahawk missiles were launched via US Navy submarines, targeting Iran's key nuclear sites. The move has increased demand for safe-haven assets, lifting the US Dollar (USD) while pressuring commodity-linked currencies like the Australian Dollar (AUD).

Risk-Off Mood and Market Reactions

Investors reacted with caution, with global markets bracing for further retaliation and regional instability. While an initial sell-off in equities was expected, much of the reaction remains muted as markets assess the full impact. However, safe-haven buying in USD, gold, and bonds has limited AUD/USD upside.

Fed's Dovish Tilt Could Offer Near-Term Relief

On the monetary policy front, Federal Reserve Governor Christopher Waller said Friday that the Fed could start cutting interest rates as early as next month, citing global uncertainty and geopolitical stress. These dovish remarks have softened the Greenback marginally, potentially capping AUD/USD losses for now.

Australian PMI Data Provides Underlying Support

Also providing modest support for the Aussie were Australia’s S&P Global PMI numbers released Monday:

• Manufacturing PMI held steady at 51.0
• Services PMI rose to 51.3 from 50.6
• Composite PMI improved to 51.2

The data suggests resilient domestic economic activity, even as global risk sentiment sours.

Internal Linking Suggestions (for Tredu.com):

• How Geopolitical Events Impact Currency Markets
• Understanding PMI and Its Market Implications
• AUD/USD Technical Analysis Guide