Australian Dollar Rises After Ceasefire News – What’s Next?
The Australian dollar (AUD) went up again on Tuesday and reached around 0.6480 against the U.S. dollar. This happened after Donald Trump said there is a full ceasefire between Israel and Iran. Because of this news, global tensions came down, and investors felt more relaxed. So, they started buying riskier currencies like the Australian dollar.
Other currencies like the New Zealand dollar also went up. At the same time, the U.S. dollar became weaker compared to other major currencies like the euro, yen, and pound.
Another reason for the Aussie dollar’s rise was recent comments from U.S. central bank officials. They said interest rates in the U.S. might be cut in July. When interest rates go down, the U.S. dollar usually weakens, and that helps other currencies go up. Also, new Australian economic data looked strong, so people think the Reserve Bank of Australia won’t cut rates anytime soon.
Right now, the Australian dollar is close to a key level at 0.6480. If it goes above that, it might move up to 0.6550. But if it falls back, it could drop to around 0.6440 or 0.6400.
Impact:
The Aussie dollar might keep rising if calm continues in the Middle East and global markets stay strong. But if U.S. data changes things, it could fall again.