A surging dollar is heading toward its sharpest monthly gain in almost a year on Thursday, sending the Aussie lower to a more than 2-month low, as traders bet on a strong US economy propping up short-term interest rates.

US military escorts of commercial ships have ended Iran’s ability to close the Strait of Hormuz in the future, Energy Secretary Chris Wright said. But It is unclear how Hormuz will be governed after the 60-day period.

Australian employment rebounded in May while the jobless rate eased from multi-year highs, data showed, a sign of resilience that could support a further lift in interest rates if needed.

The bounces in jobs and household spending ⁠were largely expected but there are signs of weakness as the job vacancies dropped in the three months to May to its lowest level in months.

Australia’s resources sector faces escalating labour tensions, with key iron ore operations and shipping hubs at high risk of industrial action, though those workers are already among the world's best paid.

Major mining corporations caution that surging operational costs and excessive bureaucracy are damaging the nation's appeal. Iron ore prices traded near 4-month low on rising supply and tepid demand.

EBC Financial group analyst says, the Australian dollar entered a heavily oversold territory, but there are no signs of an immediate trend reversal. A clean daily close below 0.68920 could lead to another leg lower.

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