FX.co ★ Australian Dollar Hits Near 3-Week Low

The Australian dollar weakened to around $0.71 on Monday, extending its decline for a third straight session and falling to its lowest level in nearly three weeks. The move came as investors continued to favor the safe-haven US dollar amid persistent uncertainty over US–Iran peace negotiations. President Trump warned that “the clock is ticking” for Tehran to reach an agreement, while Iran’s Mehr News Agency reported that Washington had offered “no tangible concessions” and was still insisting on terms deemed unacceptable by Iran.

On the domestic front, focus is shifting to the Reserve Bank of Australia’s meeting minutes due later this week, as markets look for further guidance on the policy outlook following the central bank’s 25 bp increase in the cash rate to 4.35% in May. Investors are also scrutinizing upcoming remarks from RBA official Sarah Hunter, who is expected to maintain a cautiously hawkish stance and leave the door open to further rate hikes should inflation remain elevated.

At the same time, the April labour market report will be watched closely for indications that higher borrowing costs and rising fuel prices are starting to dampen demand and slow broader economic activity.