The Australian dollar stabilized above $0.648 on Friday, but remained under pressure as escalating Middle East tensions and the potential US involvement in the region weighed on sentiment. Global markets are now bracing for a possible US decision within two weeks, as President Trump weighs a potential direct strike on Iran. However, the China-proxy currency found some support after the People’s Bank of China left its Loan Prime Rates unchanged, helping sentiment around regional demand. Domestically, the recent mixed Australian jobs report did little to alter expectations, with a July RBA rate cut still priced at a 75% probability. Westpac expects the next move in August, citing the central bank’s preference for caution and the need to assess second-quarter inflation and global conditions. Investors now turn to upcoming PMI figures for a clearer read on Australia’s economic momentum.