Forex News: Australian Dollar Rises On Iran Ceasefire Hopes

Australian Dollar Rises On Iran Ceasefire Hopes

(RTTNews) - The Australian dollar strengthened against other major currencies in the European session on Tuesday, amid hopes of de-escalation in the Middle East conflict.

Investors grew hopeful about a possible end to the Iran war as the 8 p.m. EDT Tuesday deadline set by U.S. President Donald Trump approaches.

Trump broadened his warning against Iran to include potential strikes on infrastructure such as power plants and bridges, if Tehran fails to reach a deal and the Strait of Hormuz, a crucial global energy route, is not reopened.

Iran is unlikely to reopen the Hormuz, a move that might escalate the continuing conflict, according to statements made by Iranian authorities ahead of the deadline.

"Trump has about 20 hours to either surrender to Iran, or his allies will return to the Paleolithic Age," said an advisor to Iranian Parliament Speaker Mohammad Bagher Ghalibaf.

Investors are looking forward to Wednesday's release of the US Federal Open Market Committee's (FOMC) March policy meeting minutes. The US Consumer Price Index (CPI) data for March, which is set out this Friday, will be the main event of the week.

In the European trading today, the Australian dollar rose to a 3-week high of 1.2152 against the NZ dollar, from an early low of 1.2104. The aussie may test resistance around the 1.22 region.

Against the U.S. and the Canadian dollars, the aussie advanced to 6-day highs of 0.6949 and 0.9668 from early lows of 0.6898 and 0.9609, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.70 against the greenback and 0.97 against the loonie.

Against the yen and the euro, the aussie climbed to near 2-week highs of 110.83 and 1.6654 from early lows of 110.31 and 1.6710, respectively. On the upside, 112.00 against the yen and 1.64 against the euro are seen as the next resistance levels for the aussie.

Looking ahead, U.S. LMI Logistics Managers index for March, U.S. ADP weekly employment data, U.S. goods orders for February, U.S. Redbook report, U.S. RCM/TIPP Economic Optimism index for April, U.S. consumer inflation expectations for March, U.S. consumer credit change for February and Canada Ivey PMI for March are slated for release in the New York session.

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