The Australian dollar strengthened past $0.648 on Tuesday, extending gains from the previous session, supported by a declining greenback amid mixed developments in the Israel-Iran ceasefire. US President Donald Trump announced a “complete and total” ceasefire to end the twelve-day conflict, set to begin late Monday, with Iran stopping attacks first, followed by Israel.
However, Iran’s Foreign Minister Abbas Araghchi denied any agreement on a ceasefire or halt to military operations. Adding to headwinds for the greenback were dovish comments from Federal Reserve policymaker Michelle Bowman and Governor Christopher Waller. In Australia, investor attention now turns to the May monthly CPI indicator, which is expected to ease slightly after remaining unchanged for three consecutive months. Markets are currently pricing in an 80% chance of a 25 basis point RBA rate cut in July, with a cumulative 73 basis points of rate cuts expected between now and year-end.
