Australian dollar recovers from intraday losses as Iranian media denies any outside attack on its cities.

The Australian dollar (AUD) remains in negative territory despite trimming losses on Friday. The AUDUSD pair fell as riskier assets were under pressure due to increased risk aversion in financial markets. This view grew stronger after ABC News confirmed that Israeli missiles had attacked an Iranian location, escalating Middle Eastern tensions.

The Australian equities market fell to a two-month low of 7,489 on Friday.

The Australian Dollar (AUD) faces problems, while the ASX 200 Index fell on Friday, approaching its two-month low  of 7,489. This movement was influenced by poor Wall Street indications overnight. Furthermore, Australia’s 10-year government bond yield dipped below 4.3%. Retreating from nearly four-month highs as investors anticipated a dovish outlook from the Reserve Bank of Australia (RBA) on monetary policy.

The US dollar strengthened after Fed policymakers made aggressive remarks on Thursday.

The US Dollar Index (DXY), which measures the US Dollar (USD) against six major currencies. Rises as concerns grow over the potential escalation of the Middle East conflict between Israel and Gaza. This has attracted investors looking for safe-haven investments. Furthermore, hawkish remarks from Federal Reserve (Fed) officials on Thursday caused a jump in US Treasury yields and the US Dollar. Which put downward pressure on the AUDUSD pair.
Traders are anticipated to closely scrutinize upcoming Federal Reserve speakers. Atlanta Fed President Raphael Bostic is scheduled to participate in a moderated conversation about the US economic prospects at the University of Miami, Florida. Furthermore, Chicago Fed President Austan Goolsbee is expected to attend in a moderated Q&A session at the Association for Business Journalists’ 2024 SABEW Annual Conference in Chicago.

Daily Market Movers: Australian Dollar falls on risk aversion and dovish RBA forecast.

According to Reuters, people reported hearing explosions at Isfahan’s central airport. However, the cause of the explosions is uncertain. However, Iranian media has denied claims of foreign attacks on Iranian cities, including Isfahan.
Atlanta Fed President Raphael Bostic noted that US inflation is unnecessarily high and that the Fed still needs to make progress on Addressing inflation. Meanwhile, New York Fed President John Williams emphasized the Fed’s commitment to data-driven decisions and stated that he does not see an immediate need to cut interest rates.
US Initial Jobless Claims reported a result of 212,000 for the week ending April 12, compared to an expected 215,000.
The US Philadelphia Fed Manufacturing Survey revealed an improvement in manufacturing sector developments, with a higher score of 15.5 in April, beating the projected 1.5 and 3.2.
US Existing Home Sales Change (MoM) fell by 4.3% in March, reversing a previous surge of 9.5%.
Australia’s Employment Change reported -6.6K in March, compared to the projected 7.2K and 117.6K the previous month. The unemployment rate increased to 3.8% in March, which is lower than the Expected 3.9% but higher than the prior number of 3.7%.