FX.co ★ Australian Dollar Edges Lower

The Australian dollar experienced a slight decline, dipping to approximately $0.652 on Tuesday, as investors assessed the implications of ongoing geopolitical tensions. U.S. President Donald Trump issued a call for evacuations from Tehran following Israel's intensified airstrikes on the Iranian capital, targeting, among others, state media facilities. These strikes took place even as reports indicated that Iran was urgently signaling a readiness to de-escalate tensions and reopen nuclear negotiation talks. Meanwhile, in Australia, anticipation is growing for another interest rate cut in July, building on the two rate cuts earlier this year. These measures have been a relief for financially burdened households, still grappling with the aftermath of recent years marked by high inflation. A 25 basis point reduction at the Reserve Bank of Australia's (RBA) board meeting scheduled for July 8 would reduce the cash rate to 3.60%, a rate last witnessed in April 2023. Reflecting a move toward increased transparency, the RBA has decided it will disclose voting outcomes from its policy meetings, though only in instances where decisions are not reached unanimously.