Australian dollar continues to fall on Middle East tensions

The Australian dollar fell against the greenback during trading today, continuing its decline to the lowest level in the session as the market continued to follow developments on the trade war and tensions in the Middle East.

The global foreign exchange market has been volatile since the Iranian government announced the detention of a British tanker in the Strait of Hormuz, which it did not release until now, which also heightens tensions between Tehran and the West.

The British navy sent a number of warships and a nuclear submarine to the Gulf waters to counter Iranian threats to international shipping.

Boris Johnson won the Conservative Party presidency to replace Prime Minister Theresa May and markets are looking for the actions he will take on Brexit and Iran.

On the other hand, trade war continues to haunt global markets, prompting the International Monetary Fund (IMF) to cut its forecast for global economic growth for the fourth time in nine months, with growth expected to reach 3.2 percent this year and 3.5 percent next year.

In terms of trade, by 16:01 GMT, AUD/USD fell by 0.5% to 0.6999, with a high of 0.7037 and a low of 0.6996.