• AUD/USD eased on Monday as risk sentiment weakened amid an expanding Middle East conflict
• Donald Trump signals progress on a potential peace deal, even as preparations for a possible ground offensive continue.
• The Bab el-Mandeb Strait emerges as a fresh oil supply risk after Houthi attacks on Israel, adding to inflation and commodity concerns
• Focus shifts to Reserve Bank of Australia (RBA) meeting minutes on Tuesday for clearer guidance on policy outlook.
• Much attention will be on how board members balance the risks of inflation and economic growth as a fuel shortage gripped some parts of the country.
• Immediate resistance is located at 0.6984 (38.2%fib), any close above will push the pair towards 0.7032(SMA 20).
• Support is seen at 0.6848 (50%fib) and break below could take the pair towards 0.6831(Lower BB)
Recommendation: Good to sell around 0.6870 with stop loss of 0.6960, and target price of 0.6820
