Ella 
On Monday, the Australian dollar rebounded from an eight-week low of 0.6456 hit on Friday. However, AUD/USD has hit a roadblock as traders seek the safety of the greenback amid rising tensions in the Middle East.
The Aussie dollar could face further challenges as the ASX 200 index fell, reflecting investor concerns that Israel could retaliate against Iran’s attacks on Saturday. According to Reuters, Iran has deployed explosive drones and missiles targeting Israeli military bases, and Israel is said to have intercepted nearly all missiles fired.
The U.S. dollar index (DXY) is lower after U.S. Treasury yields were subdued despite a hawkish outlook on monetary policy from the Federal Reserve. Strong U.S. inflation and improving macroeconomic indicators are prompting the Federal Reserve to reassess its stance on monetary easing. Market participants are expected to pay close attention to U.S. retail sales data due on Monday as well as a speech from the Federal Reserve.
