Australian Dollar vs US Dollar Holds Losses Near 0.7130 Amid Escalating Middle East Tensions

Australian Dollar vs US Dollar is holding losses around 0.7130 after a sharp 0.8% plunge to near 0.6500, driven by renewed US-Israel-Iran tensions sparking global risk aversion, VIX spikes, and safe-haven USD surges. The pair had rallied to 0.72 highs earlier on US-Iran ceasefire extensions, hawkish RBA signals (77% May hike odds, cash rate 4.10%), resilient jobs (+17.9k, 4.3% unemployment), and Strait of Hormuz reopening easing oil shocks. Strong US PMIs (Manufacturing 54.1, Services 51.3) and jobless claims at 215k added USD pressure, but fresh geopolitics dominate, with downside risks toward 0.7060-0.6400 if tensions persist.