AUD/USD recoups losses as Trump instructs pause on military attacks on Iran
The AUD/USD pair trades heavily volatile during the European trading session on Monday after the announcement from United States (US) President Donald Trump that he has instructed the Department of War to pause scheduled military attacks on Iranian power plants for five days.
  • AUD/USD recovers its early losses and turns flat around 0.7000 as market sentiment improves.
  • US President Trump announces postpone on military strikes on Iranian power plants.
  • Trump warned of attacks on Iranian power plants if it doesn’t open the Strait of Hormuz within the next 48 hours.

The AUD/USD pair trades heavily volatile during the European trading session on Monday after the announcement from United States (US) President Donald Trump that he has instructed the Department of War to pause scheduled military attacks on Iranian power plants for five days.

The event seems to have significantly improved investors’ risk appetite. As of writing, the Aussie pair recovers its significant early losses and turns almost flat around 0.7000. S&P 500 futures have recoups its entire early losses and have surged over 2%.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.09% -0.30% -0.36% -0.02% 0.16% 0.09% 0.02%
EUR 0.09% -0.22% -0.26% 0.06% 0.36% 0.16% 0.09%
GBP 0.30% 0.22% -0.08% 0.27% 0.57% 0.37% 0.29%
JPY 0.36% 0.26% 0.08% 0.35% 0.52% 0.37% 0.36%
CAD 0.02% -0.06% -0.27% -0.35% 0.16% -0.03% -0.02%
AUD -0.16% -0.36% -0.57% -0.52% -0.16% -0.19% -0.16%
NZD -0.09% -0.16% -0.37% -0.37% 0.03% 0.19% -0.05%
CHF -0.02% -0.09% -0.29% -0.36% 0.02% 0.16% 0.05%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Meanwhile, the US Dollar (USD) has turned upside down after the announcement. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, has given back its early gains and has dropped 0.2% to near 99.30.

Earlier in the day, the market sentiment was risk-averse, following threats from US President Trump, through a post on Truth.Social, that he will obliterate Iran’s power plants if Tehran doesn’t open the Strait of Hormuz within the next 48 hours.

In response, Iran vowed to retaliate through indefinite Hormuz closure and attacks on regional infrastructure belonging to the US and Israel if they attack Tehran’s infrastructure.

Risk sentiment FAQs

In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.

Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.

The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.

The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.

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GIÁ TRỰC TIẾP

Tên / Ký hiệu
Biểu đồ
% Thay đổi / Giá
GBPUSD
Thay đổi 1 ngày
+0%
0
EURUSD
Thay đổi 1 ngày
+0%
0
USDJPY
Thay đổi 1 ngày
+0%
0

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