Australian Dollar falls as Iran sanctions sour risk appetite, RBA minutes eyed

The Australian Dollar experienced a decline on Monday due to concerns over Iran sanctions and a cautious risk appetite following US Treasury Secretary Scott Bessent's efforts to cut off Iran from the global economy. The Treasury Department imposed sanctions on five sectors, including digital assets, technology, gold, aviation, and shipping.

The White House gave a timeline to world leaders to sever ties with Iran, while President Trump was expected to have discussions with various countries. US economic data releases were expected to pick up pace from Tuesday, with growth, inflation, and job figures, including the Core Personal Consumption Expenditures (PCE) Price Index.

Meanwhile, Australia awaited the Reserve Bank of Australia's (RBA) last meeting minutes and head of domestic markets, David Jacobs. In the RBA minutes, the odds of a rate hike at the September 29 meeting were only 14%, with a 86% chance of rates remaining unchanged. The RBA inflation forecast for the year ended July dropped from 3.8% to 3.2%, while the trimmed-mean Consumer Price Index (CPI) was expected to fall by 10% to 3.5%.

The AUD/USD pair opened the session at 0.7159 and maintained a bullish near-term bias, supported by rising trend lines and a relative strength index (RSI) of 65. Resistance was seen near 0.7320, with key support near 0.7150 and 0.7001.