Australian Dollar Weakens
2026-03-24 03:26
By
Czyrill Jean Coloma
1 min. read
The Australian dollar weakened to around $0.69 on Tuesday, erasing gains from the previous session as market sentiment turned cautious after Iran denied holding talks with the US.
President Donald Trump announced a five-day delay to planned military strikes on Iranian power and energy infrastructure, but Tehran denied any talks with Washington and accused claims of negotiations of distorting markets.
Disappointing business activity data added further pressure on the Aussie, with the manufacturing PMI slipping to a five-month low of 50.1 in March 2026, while the services PMI recorded its first contraction since January 2024, at 46.6.
Investors are now eyeing Wednesday’s inflation report for clues on the monetary policy outlook amid uncertainties stemming from ongoing Middle East tensions.
Meanwhile, the European Union and Australia sealed a free-trade deal, ending nearly a decade of talks to strengthen ties and uphold a rules-based order challenged by the Trump administration.