AUD/USD Plunges Below 0.6500 as Middle East Tensions Supercharge USD Rally

AUD/USD has crashed below 0.6500 support, targeting 0.6200, as Middle East tensions spark safe-haven demand for the USD, lifting DXY above 105 amid a 115bps rate gap (RBA 4.35% vs Fed 5.50%). The pair dipped to 0.7139 on April 29 after soft Aussie CPI at 4.6% (vs 4.7% exp) and US-Iran risks, then surged over 1% to 0.7200 on April 30 on China's PMI at 50.3 (vs 50.1 exp) and Japan's intervention crushing USD/JPY by 400 pips. Renewed geopolitics have erased gains, with AUD shorts up 18% per CFTC data fueling bearish volatility ahead of RBA's May 5 meeting.