• AUD/USD strengthened on Monday as improving global risk sentiment supported commodity-linked currencies after news of a preliminary U.S.-Iran peace agreement.
• The announcement of a deal to end the conflict between Washington and Tehran fuelled optimism across global markets.
• The U.S. and Iran on Sunday agreed to halt the U.S. blockade of Iran and reopen the Strait of Hormuz, a preliminary pact that sent oil prices falling but leaves the fate of Iran's nuclear programme to further negotiations.
The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland.
• Markets widely expect the RBA to leave its cash rate unchanged at 4.35% when it announces its decision on Tuesday, keeping the focus on policymakers' guidance for the remainder of the year..
• Immediate resistance is located at 0.7088(Daily high), any close above will push the pair towards 0.7122(38.2%fib).
• Support is seen at 0.7036(Daily low) and break below could take the pair towards 0.6987(50%fib).
Recommendation: Good to buy around 0.7040 with stop loss of 0.6970 and target price of 0.7100
