Ella 
In early Asian trading on Monday, the AUD/USD fell sharply to 0.6300. After the release of US non-farm payrolls data last Friday, the AUD/USD encountered resistance at 0.6400.
AUD/USD opened out of a 57-point bearish gap on Monday, reversing from multi-day highs and is currently consolidating.
The renewed weakness in AUD/USD may be due to a new wave of risk aversion in Asia at the beginning of the week, as risk sentiment suddenly increased over the weekend due to the military conflict between the Palestinian Hamas movement and Israel in the Middle East.
Investors, worried about the escalation of geopolitical risks in the Middle East, have sought the safe-haven currency the U.S. dollar, causing oil prices to surge. Markets remain concerned about the potential impact of another surge in oil prices on global inflation and economic growth prospects, especially as central banks are still grappling with inflation concerns stemming from Russia’s invasion of Ukraine in early 2022.
New developments in the Middle East conflict will be closely watched by the market, which will further affect the safe-haven US dollar, which will in turn affect the stock market, Australian dollar and other risk assets. Investors will also remain cautious heading into the all-important U.S. Consumer Price Index (CPI) week.
