Westpac forecasts the Australian dollar will face a ceiling of $0.7100-$0.7150 over the next 1-2 weeks. Head of FX Strategy Richard Franulovich states confirmation that the Strait of Hormuz is "genuinely and fully open" and that the U.S.-Iran cease-fire leads to a durable agreement is required before significant upward movement can occur.

The dollar is expected to trade in the range of 158.00-159.30 yen during Thursday's session, according to Sony Financial Group analyst Juntaro Morimoto. Skepticism persists over the cease-fire's effectiveness, with ongoing disagreements over its scope and reports that Iran has closed the Strait of Hormuz, highlighting risks of renewed escalation.

Asian currencies consolidate against the dollar amid fragile Middle East tensions. Israel's new airstrikes on Beirut have halted oil-tanker traffic, adding to market uncertainty. The dollar edges 0.1% higher to 158.71 yen as investors await upcoming U.S. data to gauge inflationary conditions and assess economic performance.