Australia’s building permits in June 2025 jumped by 11.9% from the previous month, far exceeding the expected 2.0%. This is the highest increase since August 2022 and shows a year-on-year growth of 27.4%, mainly due to multi-unit projects like apartments. In retail, Australia saw sales rise by 1.2% in June 2025, beating the forecast of 0.4%. This surge coincides with positive consumer price index readings, according to the Reserve Bank of Australia’s Deputy Governor.

Global Military Conflicts

On the international front, the article discusses military conflicts, including Iran’s missile attack on the Al Udeid Base and a successful U.S. strike on Iranian nuclear sites. It also mentions how the recent Japanese upper-house election affects the USDJPY technical analysis. Other news includes a warning about the high risks of foreign exchange trading, highlighting the potential for significant losses. There is also advice to be cautious when interpreting opinions and past performances for investment choices. The site featuring these articles disclaims any liability for reliance on this information, stating that trading involves risks. They clarify that they do not endorse the views shared on their platform; the content is purely for informational purposes.

Market Reactions and Safe Haven Flows

Following breaking news from July 31, 2025, we are experiencing a classic risk-off climate due to serious geopolitical tensions. The Iran-U.S. conflict has shifted traders’ focus to preserving capital and seeking safety. Expect a movement toward traditional safe-haven assets. The VIX, a measure of market fear, has risen over 40% in the last 24 hours, now trading above 28. This level hasn’t been seen since the regional banking concerns in early 2023, indicating that traders should brace for significant fluctuations in equity markets. Buying put options on major indices like the S&P 500 may be wise to guard against a downturn. Oil prices will benefit directly from the tensions in the Middle East. Brent crude futures soared past $110 a barrel overnight due to the Iran news, a sharp increase from the average of about $85 in the second quarter of 2025. Taking long positions in oil futures or energy-sector ETFs appears to be a good short-term strategy. Gold has exceeded the crucial $2,400 per ounce mark, driven by the demand for safety and uncertainty regarding the Federal Reserve. The combination of military conflict and political pressure on the Fed supports a strong trend for precious metals. This trend is evident in the significant inflows to gold ETFs, which experienced their largest single-day increase of the year. The positive economic data from Australia, while impressive, may be overshadowed by the global risk-off mood. Although June’s retail sales and building permits suggest that the RBA should maintain a hawkish stance, the gains of the AUD may be limited. It could perform well against currencies with more dovish central banks but is likely to face challenges against safe havens like the Japanese Yen and Swiss Franc. The situation with the U.S. Dollar is complicated, as it straddles both its status as a safe haven and the political turmoil surrounding the Fed. Uncertainty regarding Powell and Trump’s demands has lowered the 2-year Treasury yield by 20 basis points, creating tricky conditions for USD pairs. Expect high volatility in pairs like USD/JPY as safe-haven flows meet domestic uncertainties. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now