The EUR/USD exchange rate tumbled this week as the US dollar rose amid the ongoing crisis in the Middle East. It also retreated as concerns about the European economy rose.
The AUD/USD pair remained in a narrow range this week as the war in the Middle East. It was trading at 0.7077 on Tuesday, down slightly from the year-to-date high of 0.7147. Focus will remain on the new developments in the Middle East, upcoming US jobs data, and Australian GDP report.
Gold is finding renewed bids in Asian trades on Tuesday, making another attempt to regain the $5,400 level amid persistent demand for safe-haven assets as the Iran war extends.
The short-term outlook for EUR/USD has been consistently deteriorating since the rejection from yearly peaks near the 1.2100 hurdle recorded in late January. The continuation of ongogin leg lower threatens to breach below its critical 200-day SMA in the 1.1660 region.
Spot Gold soared to $5,419 on Monday, as risk aversion took over financial markets. The United States (US) and Israel unleashed military attacks on Iran early on Saturday, resulting in the killing of the country’s Supreme Leader, Ayatollah Ali Khamenei.
AUD/USD is still orbiting that familiar 0.7000–0.7150 range, and for now there is no clean break in sight. The Aussie continues to draw underlying support from sticky domestic inflation and a Reserve Bank of Australia (RBA) that is in no rush to soften its hawkish tone.