The Australian dollar traded in a narrow range near four-year highs, influenced by both geopolitical uncertainties and positive domestic economic signals. Concerns surrounding the Middle East conflict and disruptions to international shipping lanes were counterbalanced by a recovery in Australian PMI data, suggesting resilience in domestic demand.
- The Australian dollar held around $0.71.
- The dollar was moving in a tight range near four-year highs.
- Investors were monitoring developments in the Middle East war.
- A recovery in domestic PMI data provided support.
- Manufacturing returned to expansion, and services recovered after a weak March.
- The composite PMI gauge rose above the growth threshold.
- Firms reported disruptions tied to geopolitical tensions.
- Diplomatic efforts between the US and Iran showed limited progress.
- The Strait of Hormuz remained largely shut to international shipping.
- Attacks on commercial vessels and US pressure on Iranian ports kept supply concerns elevated.
The information suggests a mixed outlook for the Australian dollar. While global uncertainties present downside risks, a strengthening domestic economy offers a degree of support. The balance between these factors appears to be keeping the currency within a defined trading range for the time being.