The Australian dollar remains firm in the middle of the caution of the Fed and the diplomatic impulse between Iran and Israel

• The AUD/USD maintains profits within Monday’s range despite a stable US dollar.
• Fire high efforts and possible nuclear conversations between Iran and Israel Calman the nerves of the market.
• The RBA considers publishing votes not attributed to increase the transparency of politics, expected decision in July.
• Attention focuses on US retailers, Fed’s rates decision and Australian employment data this week.

The Australian dollar (Aud) advances slightly against the US dollar (USD) on Tuesday, with the Aud/USD torque keeping comfortably within Monday’s negotiation range. The modest profits of the AUSSIE are produced despite an American dollar in general stable, since the operators act cautiously before the decision on the interest rates of the Federal Reserve (Fed) scheduled for Wednesday. Meanwhile, the signs of a decrease in geopolitical tensions between Iran and Israel offer a slight impulse to appetite due to the risk in the markets, even when cross -border attacks continue for the fifth consecutive day.

At the time of writing, the AUD/USD has risen approximately 0.19% in the day, quoting about 0.6533. In spite of the slight intradia rebound, the price action remains confined within a narrow range between 0.6400 and 0.6550. On Monday, the PAR briefly tested levels not seen since November 2024, reaching a maximum session of 0.6552 before cutting profits and closing down. The 0.6550 brand continues to act as a stubborn barrier, limiting rising attempts in recent weeks.

The conflict between Israel and Iran has intensified, extending to the fifth consecutive day, with reports that Israel has attacked more than 100 military and nuclear sites in Iran in a large -scale offensive called Operation León Ascendant. In retaliation, Iran has launched multiple attacks with missiles and drones in important Israeli cities, resulting in civilian casualties and damage to diplomatic sites. Amid the increasing violence, world leaders are hurrying to prevent greater escalation: United States, France and the Gulf states are pressing the fire and a renewed nuclear dialogue, while Russia has offered to mediate supervising the enriched uranium stock of Iran. Meanwhile, it is reported that the White House is considering a possible meeting this week between the special envoy of the US Steve Witkoff and Iranian Foreign Minister Abbas Araghchi, which indicates a possible diplomatic opening that has helped maintain the feeling of the relatively stable market.

Within Australia, investors are closely monitoring developments in the Bank of the Australian Reserve (RBA). According to a government spokesman, the Central Bank is considering whether to publish the unattered votes of its newly formed Monetary Policy Council, a step destined to improve transparency in its process of establishing fees. The idea, which arises from the recommendations made in the independent review of the RBA last year, is expected to be on the table at the next meeting of the Council in July.

Looking ahead, market attention moves to retail sales of the United States scheduled for Tuesday, the decision on Fed interest rates on Wednesday and Australia’s employment report on Thursday, key events that will probably boost aud/USD volatility in the next few days.