Australian Dollar Softens to Near 0.7150 on Weak Pmis, US Iran Tensions

• AUD/USD softens to around 0.7150 in Thursday’s early Asian session. 
• Australia's flash PMIs slumped in May. 
• Trump said negotiations with Iran are in the final stages and warned of attacks if the deal fails. 

The AUD/USD pair loses ground to near 0.7150 during the early Asian session on Thursday. The downbeat Australian economic data and safe-haven flows weigh on the Australian Dollar (AUD) against the US Dollar (USD). Traders will keep an eye on the preliminary reading of the US Purchasing Managers Index (PMI) for May later on Thursday. 

Data released by S&P Global on Thursday showed that the preliminary reading of Australia's S&P Global Manufacturing Purchasing Managers Index (PMI) declined to 50.3 in May from 51.3 in April. Meanwhile, the Services PMI eased to 47.7 in May, compared to 50.7 in April, while the Composite PMI fell to 47.8 in May versus 50.4 prior.  

Furthermore, ongoing Middle East tensions and uncertainty surrounding US-Iran talks continue to underpin a safe-haven currency such as the Greenback and act as a headwind for the pair. US President Donald Trump said on Wednesday that talks with Iran were in the final stages, per Bloomberg. Nonetheless, Trump also reiterated a pledge to restart attacks in the coming days if Iran doesn’t agree to his terms. 

Iranian President Masoud Pezeshkian stated that Tehran was not on the brink of giving in. “Forcing Iran to surrender through coercion is nothing but an illusion,” Pezeshkian posted on X.