FX.co ★ Aussie Dips on Rising Middle East Tensions

The Australian dollar edged lower to approximately $0.649 on Friday, losing the gains it had made the previous day. This downturn occurred as market sentiment deteriorated due to rising tensions in the Middle East. Israel's recent preemptive strikes on numerous Iranian targets led to a national emergency declaration and warnings of imminent missile and drone threats. The situation, intensified by worries about Iran's nuclear ambitions, prompted a surge in demand for safe-haven assets, adversely affecting currencies like the Australian dollar that are sensitive to risk. Further contributing to market unease, President Trump announced an expansion of steel tariffs on June 23 to encompass steel-based household appliances, raising duties to 50% from the previously implemented 25% in March. Meanwhile, investors kept a close watch on US-China trade discussions, which concluded with an agreement on a framework, preserving the possibility of a deal, although specifics remain vague. Looking forward, the focus will shift to Australia's employment figures for May, set to be released next week, which are expected to offer new insights into the nation's economic condition amid the prevailing global uncertainties.