The Australian dollar (AUD) experienced a decline against major currencies on Thursday, slipping 0.28% to about 0.7130 against the US dollar (USD) during European trading hours. This downturn is attributed to a cautious market sentiment and disappointing employment figures from Australia for April.
Market sentiments have shifted toward aversion to risk, particularly following remarks from Iran’s Supreme Leader Mojtaba Khamenei, who stated that “near weapons-grade uranium should remain in Iran.” This statement stands in contrast to US expectations for an agreement with Iran, which may complicate ongoing peace discussions.
Mirroring this risk-off attitude, S&P 500 futures dropped 0.4% to around 7,400. Meanwhile, the US Dollar Index (DXY), which measures the dollar’s value against six major currencies, rose by 0.12% to 99.25.
This cautious outlook briefly changed on Wednesday when US President Donald Trump mentioned that the US was now in the “final stages” of reaching an agreement with Iran.
On the home front, the Australian Labor Market Report revealed that the unemployment rate rose to 4.5%, higher than the anticipated stability at 4.3%. Additionally, employers were projected to bring on board 17,500 new job seekers while letting go of 18,000 workers. This cooling of job demand in Australia casts doubt on the hawkish sentiments of the Reserve Bank of Australia (RBA).
