FxWirePro: AUD/USD eases as middle east peace progress ebbs

• AUD/USD dipped  on Wednesday  as deteriorating U.S.-Iran relations dampened risk appetite.

• The market semtiment  remained cautious  after fresh hostilities threatened to unravel the tentative truce. U.S. President Donald Trump said Iran had shot down a U.S. Apache helicopter in the Strait of Hormuz and vowed to respond.

• Investors were wary as diplomacy has so far failed to produce a peace deal or reopen the Strait of Hormuz, a vital artery for global oil supplies.

• On the data front,China's producer prices hit their highest since July 2022 in May, while consumer inflation stayed elevated amid higher global energy costs.

•The producer price index (PPI) rose ​3.9% from the previous year, National Bureau of Statistics (NBS) data showed on Wednesday.Consumer prices in May rose 1.2% from a year earlier mainly on rising gasoline.

Technically, AUD/USD may struggle to overcome resistance at 0.7080 under the current risk-off environment, leaving the pair vulnerable to additional downside pressure

•  Immediate resistance is located at 0.7108(38.2%fib), any close above will push the pair towards 0.7134(SMA 20).

•  Support is seen at 0.7004(Lower BB) and break below could take the pair towards 0.6988(50%fib).

 Recommendation: Good to sell  around 0.7040 with stop loss of 0.7100 and target price of 0.6960