Forex Today: Trump Pauses Project Freedom, Risk Assets Advance - 06 May 2026

President Trump announced a temporary pause to the US operation escorting ships through the Strait of Hormuz to allow talks with Iran, triggering a broad risk-on market reaction. US and South Korean equity benchmarks (including the Nasdaq 100 and S&P 500) pushed to fresh record highs, while the Australian dollar climbed sharply, with AUD/USD reaching a new three‑year high. Energy prices, notably Brent crude and gasoline, eased, even as gold and silver rallied and Bitcoin traded near $81,000. Economic prints were largely in line with expectations (US ISM Services and JOLTS), while New Zealand’s unemployment unexpectedly fell to 5.3%. Overall market tone favored risk assets and procyclical currencies, supporting a bullish outlook for AUD/USD and equities in the near term.