AUD/USD turns green on risk recovery
- AUD/USD flashing green, tracking the recovery in the risk sentiment.
- The latest news reports have triggered hopes of de-escalation of US-Iran tensions.
AUD/USD has turned positive with risk sentiment recovering significantly for hopes for a de-escalation of US-Iran tensions.
The currency pair is currently trading at 0.6880, representing a 0.15% gain on the day, having hit a low of 0.6850 at 00:40 GMT.
The Aussie and other risk assets faced selling pressure in early Asia as geopolitical risks increased sharply with Iran's retaliatory attack on US airbases in Iraq. While AUD/USD fell to lows near 0.6850, the futures on the Dow Jones Industrial Average (Dow) fell by 400 points. Stocks in Japan were reporting almost 600 point drop at one point.
It was feared that President Trump would launch a stronger retaliatory attack in response to casualties caused by Iran's aggression.
However, news hit the wires an hour ago stating that US troops suffered no casualties. President Trump put out a tweet a few minutes before press time, confirming negligible damage. Further, Iran said that it will stop attacks if there is no response from the US.
These new reports weakened the odds of a full-blown US-Iran military conflict, allowing risk assets to recover the lost ground. The Dow futures are now down just 100 points.
AUD/USD will likely find acceptance above 0.69 if the European equities open the day on a positive note.
Technical levels