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The Australian Dollar (AUD) trades under pressure against the US Dollar (USD) on Thursday, as the Greenback steadies after recent weakness, allowing AUD/USD to snap a three-day winning streak. At the time of writing, the pair is trading around 0.7155 after briefly approaching the 0.7200 level, last seen in June 2022, following the release of Australian employment data. The US Dollar is stabilizing, with the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, snapping an eight-day losing streak to trade near 98.20 after rebounding from an intraday low of 97.83, its lowest level since March 2. The rebound comes as geopolitical headlines surrounding the US-Iran conflict keep markets on edge. Gulf and European officials see a US-Iran deal taking up to six months to finalize, urging an extension of the current ceasefire and calling for the immediate reopening of the Strait of Hormuz to restore energy flows, warning that prolonged disruption could risk triggering a global food crisis. Meanwhile, US and Iranian negotiators have reportedly scaled back ambitions for a comprehensive peace agreement, instead pursuing a temporary memorandum to prevent a renewed escalation. Investors remain cautiously optimistic about a potential deal, with US President Donald Trump suggesting a weekend meeting and potential ceasefire extension. Oil prices remain elevated despite easing, keeping inflation risks in focus and reducing the scope for near-term Federal Reserve rate cuts. New York Fed President John Williams noted the Middle East conflict is already lifting inflation, stating policy is well positioned despite challenges. He expects inflation to rise to around 2.75%-3% this year. In Australia, the latest employment data showed mixed signals but broadly supported a resilient labor market, with the economy adding 17.9K jobs in March (slightly below expectations of 20K) and the unemployment rate steady at 4.3% for a second consecutive month. The Reserve Bank of Australia (RBA) sets interest rates and manages monetary policy, aiming to maintain price stability (2-3% inflation) while contributing to currency stability, full employment, and economic welfare. The RBA’s primary tool is adjusting interest rates, with other tools including quantitative easing (QE) and tightening (QT). Higher interest rates strengthen the AUD, while QE typically weakens it by injecting liquidity into the economy.