Investors push the ASX 200 index 0.7% higher to 8823 as sentiment improves around geopolitical risks, particularly concerns about conflict between the US and Iran.
Local traders are more comfortable taking on equity risk as overseas markets stabilise. Currency markets move more cautiously yet still reflect that shift in tone.
The day’s gains coincide with a rebound in US equity futures, which lift as signals of relative calm emerge around US-Iran relations. Those moves soften fears of an immediate escalation that could roil global markets and commodities.
Australian stocks tend to track Wall Street’s lead, so the firmer US futures provide a clear cue for local buyers.
Currency traders also react, nudging the Australian dollar slightly higher to US68.99c against the greenback. Demand for higher-yielding, risk-sensitive currencies improves as worst-case geopolitical scenarios look less likely.
A stronger local currency can temper export competitiveness yet it often reflects broader confidence in global growth and financial stability.
