The Australian Dollar (AUD) outperformed most major currency peers during the European trading session on Thursday, with the exception of the Canadian Dollar (CAD) [1]. The AUD reached a fresh multi-year high around 0.7200 against the US Dollar (USD) before retreating slightly to trade near 0.7170, remaining marginally higher on the day [1]. According to a percentage change table, the AUD was strongest against the New Zealand Dollar (NZD) and showed gains against other major currencies, including a 0.13% rise versus the USD [1].
The positive performance of the AUD was attributed to a favorable risk-on market sentiment, driven by hopes for a potential permanent ceasefire between the United States and Iran [1]. S&P 500 futures extended session gains during European trade, reflecting improved investor risk appetite, while the US Dollar Index (DXY) traded 0.1% higher near 98.15 after recovering early losses [1].
On the geopolitical front, White House press secretary Karoline Leavitt stated that the US is actively engaged in negotiations with Iran, with another round of talks likely to be scheduled in Pakistan, according to The Guardian [1]. However, Pakistan’s foreign ministry clarified that they have no information regarding the venue for the second round of US-Iran talks [1].
Domestically, Australian labor market data for March came in almost in line with estimates. The economy added 17.9K new jobs, slightly below the forecast of 20K and the previous reading of 49.7K, while the unemployment rate remained steady at 4.3% as expected [1].
CONCLUSION
The Australian Dollar's outperformance was supported by improved risk sentiment and stable domestic labor data. While geopolitical developments and labor figures provided a backdrop, the market reaction was moderately positive, with the AUD maintaining gains against most peers. Investors remain attentive to ongoing US-Iran negotiations and further economic data releases.