The Australian dollar dipped by 0.30% on Monday as concerns about risk appetite increased. This shift followed Iran’s decision to suspend talks with the US amid escalating Israeli military actions in Lebanon. In tandem with that, US data showed stabilization in business activity, leading AUD/USD to hit a two-day low of 0.7134.
AUD/USD slides as global tensions overshadow strong US manufacturing data
Geopolitical factors are impacting the markets. Israel’s operations in Lebanon have stalled discussions between the US and Iran, provoking a response from the White House, with President Trump trying to mitigate the rising tensions. Concurrently, the situation has contributed to a spike in oil prices, pushing WTI up more than 5%, and causing gasoline prices to exceed $92 per barrel.
The increase in oil prices has led to a decline in U.S. Treasuries and a rise in the US dollar. The dollar index, which tracks the currency against six others (DXY), increased by 0.24% to reach 99.18, creating further headwinds for AUD/USD.
Surprising rise in ISM manufacturing PMI; raw material costs decline
The ISM manufacturing PMI in the US for May was unexpectedly revised upward, climbing to 54.0 from 52.7 in April, while prices paid for components dropped to 82.1 from 84.6.
Earlier this week, Federal Reserve Chairman Jerome Powell noted that the Fed’s credibility could be at stake if Trump were to dismiss officials over policy disagreements.
Looking forward, market focus will shift to JOLTS on Tuesday, followed by ADP and ISM Services data on Wednesday, and then a significant non-farm payrolls report on Friday.
In recent months, the Australian dollar has decreased from nearly a year-to-date high of 0.7277 due to disappointing employment figures and a slight dip in inflation, following the Reserve Bank of Australia’s (RBA) third interest rate hike of this year.
Market participants have now lowered the likelihood of another RBA rate increase in June to just 5%, while they await the first quarter 2026 GDP data, which is expected to show a 0.5% growth rate.
AUD/USD Price Outlook: Technical Analysis
Currently, AUD/USD is trading at 0.7161, remaining above the support from an uptrend line and the triple simple moving average (SMA) around 0.7110, which suggests a generally bullish outlook. The recent price movements seem to respect the uptrend lines starting at 0.6897 and 0.6833. The Relative Strength Index (RSI) around 50 indicates a phase of consolidation rather than excessive upward momentum within this larger uptrend.
On the downside, initial support lies near the uptrend line at approximately 0.7155, followed by additional support levels around 0.7142 and the triple SMA zone near 0.7110. A drop below this support area could lead to a deeper decline toward the 0.6451 region. Conversely, if prices ascend, bulls will encounter significant resistance at the upper extension of the projected trend near 0.7810, followed by a structural barrier around 0.8231, where prior trend patterns might restrict further advances.
(This technical analysis was generated using AI tools.)
Current AUD Price and Changes
The following table details today’s percentage fluctuations in the Australian Dollar (AUD) against major currencies. The AUD performed strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.21% | -0.05% | 0.24% | 0.32% | 0.31% | 0.93% | 0.72% | |
| EUR | -0.21% | -0.23% | 0.00% | 0.12% | 0.16% | 0.75% | 0.51% | |
| GBP | 0.05% | 0.23% | 0.26% | 0.35% | 0.34% | 0.95% | 0.75% | |
| JPY | -0.24% | 0.00% | -0.26% | 0.10% | 0.09% | 0.70% | 0.49% | |
| CAD | -0.32% | -0.12% | -0.35% | -0.10% | -0.01% | 0.59% | 0.41% | |
| Australian Dollar | -0.31% | -0.16% | -0.34% | -0.09% | 0.01% | 0.55% | 0.41% | |
| New Zealand Dollar | -0.93% | -0.75% | -0.95% | -0.70% | -0.59% | -0.55% | -0.19% | |
| Swiss Franc | -0.72% | -0.51% | -0.75% | -0.49% | -0.41% | -0.41% | 0.19% |
This heat map depicts the percentage shifts between major currencies. The left column represents the base currency while the top row indicates the quote currency. For instance, selecting Australian Dollars from the left and moving horizontally to US Dollars will show the percentage change for AUD (Base)/USD (Quote).
