Australian Dollar falls as US-Iran conflict lifts USD, GDP data eyed

The Australian Dollar (AUD) experienced a decline of 0.29% against the US Dollar (USD) on Tuesday due to heightened tensions in the Middle East, which increased demand for the US currency as a safe haven asset. AUD/USD reached a level of 0.7146. Oil prices continued to fall as attacks persisted between the US and Iran, despite US President Trump's warning that Tehran would face "total annihilation" if it retaliated.

US economic data included JOLTS job openings for July, which came in lower than expected at 7.27 million. The Institute for Supply Management (ISM) Manufacturing PMI decreased from 55.6 to 54.6 in August, still indicating expansion. US Treasury yields rose, with the 10-year note increasing by more than 4 basis points to 4.796%. Fed Governor Michael Barr expressed readiness to raise rates if inflation does not ease, given a stable labor market and low unemployment rate.

Investors closely watched upcoming jobs data, including the Challenger Job Cuts for August, Initial Jobless Claims, and the crucial August Nonfarm Payrolls report. Australia's economic report for the second quarter of 2026 will be released on Wednesday, with GDP expected to grow by 0.3% quarter-over-quarter and 1.8% annually. AUD/USD traded at 0.7147, showing a mildly bullish outlook as it stayed above the cluster of 50-, 100-, and 200-day Simple Moving Averages (SMAs) near 0.7021.

The Relative Strength Index (14) was around 59, indicating constructive momentum. Resistance was identified at 0.7198, and support lay near the grouped SMAs at 0.7021.