• AUD/USD edged higher on Wednesday as markets balanced fresh U.S.–Iran geopolitical developments.
• U.S. Vice President Vance cancelled his Pakistan trip, while President Trump described the Iran ceasefire as open-ended, adding to uncertainty around the durability of de-escalation efforts.
• Meanwhile, Iran has reportedly kept the Strait of Hormuz closed and classified any U.S. naval presence as hostile, raising concerns over potential disruptions to global energy supply routes and broader market risk appetite..
• Attention also turns to domestic policy signals, with RBA officials Hunter and Plumb scheduled to appear before the Senate productivity committee . Their remarks will be closely watched for any confirmation of the central bank’s tightening bias or signs of shifting economic assessment...
• Technically, the Australian dollar remains range-bound, but a sustained break above the 0.7224 resistance zone is seen as a key trigger that could open the door to the next upward leg in the currency.
• Immediate resistance is located at 0.7224(23.6%fib), any close above will push the pair towards 0.7260(Higher BB).
• Support is seen at 0.7114(38.2%fib) and break below could take the pair towards 0.7028(50%fib)
Recommendation: Good to buy around 0.7140 with stop loss of 0.7060, and target price of 0.7220
