Dollar Strengthens as Risk Sentiment Sours on Wall Street

The dollar strengthened broadly on Tuesday as risk sentiment soured following a troubling session on Wall Street, with EUR/USD breaking below the 1.1400 level and AUD/USD falling to fresh 11-week lows under 0.7000.

Currency markets are being driven primarily by dollar sentiment and the overall risk mood, which remain closely tied. The US-Iran situation has kept a fragile peace for now, but equity markets are the main focus. Wall Street's decline yesterday weighed on risk appetite, boosting demand for the safe-haven dollar. The break of key technical levels, such as EUR/USD under 1.1400 and AUD/USD below 0.7000, suggests further dollar gains could be in store in the short term. Traders can track the latest exchange rates on NowPrice's real-time forex quotes to monitor these moves.

Looking ahead, with no major FX option expiries on the calendar today, price action will likely continue to be driven by broader market sentiment and any developments in US-Iran tensions. Key levels to watch include EUR/USD's ability to hold below 1.1400 and whether AUD/USD can stabilize above 0.6900. Equity market performance, particularly in the US, will remain a critical barometer for risk appetite and dollar direction.