The escalating conflict in Iraq has also weighed on the currency, having created safe-haven demand for the greenback and the yen, FXCM currency analyst David de Ferranti said. "Looking ahead, if we see tensions surrounding the Middle East or Ukraine escalate, the Australian dollar could face further weakness in the short term," Mr de Ferranti said. "However, we have witnessed several flare-ups of geopolitical tensions in recent months, which have failed to leave a lasting impact on the currency. "This suggests that if the swell settles from the most recent storm of volatility, the currency may be afforded some breathing room.
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