The Australian Dollar strengthens as President Trump prolongs the Iran ceasefire, while Australia’s PMIs recover back into expansion territory.

AUD/USD advances to around 0.7155 in early Asian trading on Thursday. President Trump noted there is “no set timeline” for the Iran conflict, while Australia’s preliminary PMIs returned to expansion territory in April.

The AUD/USD pair strengthens to around 0.7155 in early Thursday Asian trading, supported by improved risk sentiment after US President Donald Trump extended the Iran ceasefire. The move has eased concerns over a renewed conflict that previously drove energy prices higher, lending support to the Australian Dollar against the US Dollar. Investors now await the preliminary S&P Global PMI data due later in the day.

Trump stated that the ceasefire extension comes at Pakistan’s request as Washington looks for a unified proposal from Iran, helping calm market tensions. However, risks persist as Iran maintains control over the Strait of Hormuz and continues hostile actions in the region. Iranian parliament speaker and chief negotiator Mohammad Bagher Ghalibaf warned that reopening the key shipping route would be “impossible” amid what he described as ongoing violations of the ceasefire by the US and Israel.

Lingering geopolitical tensions in the Middle East could still support the safe-haven US Dollar and limit further upside in the pair.

On the data front, Australia’s preliminary S&P Global PMIs showed a return to expansion in April. The Manufacturing PMI rose to 51.0 from 49.8, the Services PMI improved to 50.3 from 46.3, and the Composite PMI climbed to 50.1 from 46.6, indicating a modest recovery in business activity.