AUD/USD Retreats from Multi-Week High but Holds Above 0.6900

The AUD/USD pair extended its pullback from a two-and-a-half-week top near 0.6970, reached on Friday, dropping to the 0.6930-0.6925 zone during the Asian session. The decline builds on a modest bearish gap opening at the start of the week.

Rising geopolitical tensions between the US and Iran have boosted demand for the safe-haven US dollar, weighing on risk-sensitive currencies like the Australian dollar. Despite the retreat, the pair remains above the 0.6900 handle, suggesting some underlying support.

Traders are watching for further cues on the conflict's escalation and any impact on commodity prices, given Australia's exposure to global trade.