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Published: 2024-01-05T05:19:54.000Z

AUD/USD flows: Geopolitical Tension Stays in Spotlight

byCephas Kin Long Yung

FX Analyst
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The Politico reported US officials planning for the US to respond to a wider, protracted Middle East war

The Politico reported US officials are planning for the US to respond to a wider, protracted Middle East war. The attacking of commercial ships in the Red Sea seems to have triggered the U.S. to respond with military action that they have restrained from in the past months, in order to not heighten geopolitical tension. A U.S. military action will no doubt raise global attention and be a headwind to risk asset for more uncertainty yet it is far too soon to suggest actual action is in play now. 

AUD/USD treads 0.12% lower to 0.6697 as USD receive haven bids and global risk sentiment tilting sour.

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Topics
FX DM
AUD/USD-Commentary
Foreign Exchange
Flows

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