24.04.202600:54:37UTC+00Aussie Eyes 1st Weekly Loss in a Month

The Australian dollar hovered near $0.71, holding its recent decline and heading for its first weekly loss in a month as risk sentiment deteriorated amid the protracted conflict in the Middle East. The currency, commonly used as a proxy for global risk, remained under pressure as Asian equities extended their pullback from record highs, with optimism fading over sustained progress in US–Iran negotiations. Growing concerns about potential disruptions to energy shipments through the Strait of Hormuz also weighed on sentiment and bolstered demand for the safe-haven US dollar.

However, the downside in the Aussie was contained by expectations that the Reserve Bank of Australia could raise interest rates next month, supported by a strong labor market and oil-driven inflation pressures. Investors are now looking ahead to key inflation data due next week for further guidance on the monetary policy outlook.

In addition, Japan and Australia are poised to finalize an economic security agreement in early May, covering energy, rare earths, food, and other critical commodities. The deal is expected to provide further support for the commodity-linked Australian dollar.