AUD/USD Retreats: Fed Hawkishness and Geopolitical Tensions Bolster USD

The AUD/USD is retreating, trading around 0.6965, down 0.24% today, as a hawkish Fed and Iran tensions strengthen the US Dollar. Monetary policy divergence, with the Fed maintaining a 'higher-for-longer' stance against a potentially less hawkish RBA, is widening interest rate differentials. Geopolitical risk aversion is driving safe-haven flows to the USD, reinforcing bearish momentum for AUD/USD.