AUD/USD moves toward 0.6920 amid improved risk sentiment, but gains are capped as Iran declines ceasefire

AUD/USD Climbs Amid Improved Market Sentiment

The AUD/USD pair advanced by more than 0.5%, reaching the 0.6918–0.6919 range as investor confidence strengthened. However, the upward momentum slowed after Iran dismissed a proposed ceasefire. US stock markets ended the session in positive territory, while news emerged that the United States is preparing potential military actions against Iran, keeping attention on the Strait of Hormuz.

In economic updates, the US ISM Services PMI for March dropped to 54.0 from 56.1, falling short of the expected 54.9. Notably, the Prices Paid index surged to 70.7, marking its highest level since 2022, largely due to rising fuel costs. The US Dollar Index briefly surpassed the 100.00 mark before retreating 0.20% to 99.98.

Australian financial markets are set to resume trading on April 7 following a four-day holiday, with the S&P Global Services PMI also in focus.