FX.co ★ Aussie Dollar Pressured by Middle East Conflict

The Australian dollar held steady above $0.648 on Friday, though it continues to face challenges due to rising tensions in the Middle East and the potential for US involvement in the area, which negatively impacts risk sentiment. Global markets are currently on alert for a possible decision from the US within the next two weeks, as President Trump considers a direct military action against Iran. Despite these pressures, the Australian currency found some relief after the People's Bank of China maintained its Loan Prime Rates, thus supporting regional demand sentiment. In Australia, the latest jobs report delivered mixed results and did not significantly impact expectations, with the likelihood of an interest rate cut by the Reserve Bank of Australia (RBA) in July still estimated at 75%. Westpac anticipates the next rate change in August, pointing to the central bank's cautious approach and the need to evaluate second-quarter inflation and global economic conditions. Investors are now focusing on upcoming PMI figures for a better understanding of Australia's economic momentum.