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fxJun 9, 2026, 9:54 PM

Australian Dollar Tests Six-Week Low as Trump Rattles Markets

The Aussie dollar slipped 0.25% against the greenback on Tuesday, hitting a six-week low of 0.7027, as market sentiment soured after Trump threatened retaliation against Iran over a downed helicopter in the Strait of Hormuz.

AUDUSD

The Australian dollar weakened on Tuesday, falling approximately 0.25% against the US dollar as risk appetite faded. The AUD/USD pair touched 0.7027, a six-week low, before stabilizing.

The move came after US President Donald Trump threatened to retaliate against Iran following the downing of a helicopter in the strategic Strait of Hormuz. The heightened geopolitical tension weighed on commodity-linked currencies like the Aussie, while the greenback gained on safe-haven demand.

Traders now watch for further developments in the Middle East, as any escalation could keep pressure on the Australian dollar in the near term.

Source: FXStreet Forex News