Ella 
During Friday’s early New York session, the AUD/USD pair sustains its upward momentum above the key support level of 0.6400. The Australian dollar rebounds as concerns regarding a potential escalation in Middle East tensions subside, following reports from Iran indicating that the recent drone attack did not impact nuclear facilities in Isfahan. Additionally, while the scope of the reported attack from Israel remains unconfirmed by Israeli authorities but acknowledged by US officials, it appears to have been limited in scale. Furthermore, Iran’s announcement of no immediate plans for retaliation contributes to the easing of market apprehensions.
Improved sentiment towards riskier assets boosts market optimism, reflected in the buying interest observed in the S&P 500 at the market open, facilitating a recovery from losses incurred during the European session. Despite Federal Reserve (Fed) policymakers advocating for prolonged higher interest rates, 10-year US Treasury yields retreat to 4.62%.
In summary, the AUD/USD pair sustains its recovery above 0.6400 amid a decline in the US Dollar, buoyed by reduced geopolitical tensions and an overall improvement in market sentiment favoring riskier assets.
