Ella 
AUD/USD is still falling after paring losses on Friday. AUD/USD fell amid rising risk aversion in financial markets, which put risk assets under pressure. That sentiment intensified after ABC News confirmed that an Israeli missile struck a site in Iran, raising tensions in the Middle East.
The Australian dollar (AUD) faces challenges, with the ASX 200 Index falling towards a two-month low of 7,489 on Friday. The trend was hampered by weakness on Wall Street overnight. Separately, Australia’s 10-year government bond yield fell below 4.3%, retreating from a more than four-month high as investors expected the Reserve Bank of Australia (RBA) to take a dovish stance on monetary policy.
The U.S. Dollar Index (DXY), which measures the U.S. dollar (USD) against six major currencies, moved higher on rising concerns over a possible escalation of the Israel-Gaza conflict in the Middle East. This attracts investors seeking safe-haven assets. In addition, hawkish comments from Federal Reserve (Fed) officials on Thursday triggered a surge in US Treasury yields and the US dollar, which subsequently put downward pressure on AUD/USD.
