The Australian dollar held its recent decline to around $0.648 on Monday, as heightened geopolitical tensions in the Middle East continued to weigh on market sentiment. Risk aversion intensified after Israel and Iran launched fresh attacks over the weekend, targeting each other’s energy infrastructure and stoking fears of a broader regional conflict, which boosted safe-haven demand for the US dollar. Additionally, lingering trade uncertainties further pressured the Aussie, with markets still digesting the vague framework of a tentative US–China trade agreement announced last week. Meanwhile, mixed Chinese economic data for May failed to lift the Australian dollar, with retail sales showing moderate growth, industrial production slowing slightly, and fixed asset investment missing expectations—signaling uneven momentum in China’s recovery. At home, this week’s job market data will be closely watched for insights into Australia’s economic health and its impact on the RBA’s outlook.