AUD/USD Slides Over 1% on Hormuz Strikes After Weak GDP

AUD/USD has dropped sharply in early trade after military strikes near the Strait of Hormuz triggered a broad risk-off move into the US dollar. The pair had already slipped below 0.7200 following Australia’s softer-than-expected Q4 GDP print of +0.6% QoQ versus +0.8% forecast. Earlier in the period the currency had climbed toward 0.6340 on easing US-Iran tensions before reversing on China’s weak PMI and strong US data that lifted DXY above 105. Renewed Middle East violence and the latest domestic growth miss have reinforced bearish pressure, with the pair now testing support near 0.7150-0.7100.