AUD/USD flows: Geopolitical Tension Drove Risk Lower

On Tuesday Asia session, it was reported that Iran had fired missiles into Iraq with consequent fatalities and was close to the US Consulate in Erbil. Moreover, a branch of Iranian Armed Forces are also exhibiting hostile behavior to merchant ship in the Red Sea. This is no doubt a further escalation of geopolitical tension around Middle East and see risk asset take a nosedive as it is hard to see the U.S. not retaliate. USD is trading broadly higher on haven bids.

And as commodity also being soft, there is no support for the Aussie and AUD/USD is trading 0.72% lower at 0.6611.