Market conditions reflect a weakened Australian Dollar, driven down by escalating conflict in the Middle East and dampened by domestic economic data. Investors are flocking to safe-haven assets, strengthening the US Dollar and further pressuring the Aussie.
- The Australian dollar slipped to around $0.70 due to escalating conflict in the Middle East.
- US and Israel carried out coordinated strikes on Iran.
- Iran responded with retaliatory attacks targeting US assets.
- The manufacturing PMI was revised down to 51 in February 2026.
- The Melbourne Institute’s Monthly Inflation Gauge fell 0.2% month-on-month in February.
- AUD/USD trades 0.85% lower to near 0.7050.
- Risk-off market sentiment amid the United States-Iran war has weighed heavily on the Australian Dollar.
- Investors will focus on Reserve Bank of Australia (RBA) Governor Michele Bullock’s speech on Tuesday.
The Australian Dollar is facing significant headwinds. Global uncertainty is diminishing its appeal, while less-than-stellar economic figures from within Australia are adding to the downward pressure. Upcoming events, such as the RBA Governor’s speech, could introduce further volatility.