**BREAKING: Australian Dollar Slides Below 0.7150 Despite Reserve Bank Hawkish Position**
The Australian Dollar weakened sharply during early European trading Friday, falling to approximately 0.7120 against the US Dollar despite the Reserve Bank of Australia maintaining a hawkish monetary policy stance. The AUD/USD pair lost momentum as global risk sentiment deteriorated amid escalating Middle East tensions, prompting traders to seek safe-haven currencies over commodity-linked assets like the Aussie.
The currency’s decline comes at a critical juncture, with market participants now awaiting the US May employment report due later Friday, which could provide further direction for the pair. The employment data will be closely scrutinized for signals on Federal Reserve policy trajectory, potentially adding pressure on AUD if US jobs figures beat expectations and strengthen the Dollar further.
Traders should monitor whether the 0.7100 support level holds, as a breach could accelerate selling pressure despite Australia’s relatively hawkish central bank positioning.
**
FXnCO Insight
** AUD short positions may be warranted ahead of US jobs data, particularly if geopolitical tensions persist and risk appetite remains suppressed.
Source: FXStreet