• AUD/USD edged higher on Monday as escalating tensions between the United States and Iran weighed on dollar.
• The U.S. military launched a ninth consecutive day of strikes against Iran, while Tehran retaliated by targeting sites across the region, intensifying tensions in the Middle East..
• Maritime traffic through the Strait of Hormuz has slowed dramatically, with the U.S. imposing a naval blockade on Iranian ports and Tehran targeting ships, raising concerns over energy supply disruptions.
• The recent jump in oil prices has led investors to price in a higher likelihood of another RBA rate hike this year, after three increases brought the cash rate to 4.35%. The odds of an additional move by December have climbed to 76%.
• Markets are focused on Thursday's Australian jobs report, where economists expect employment to rise by 15,000 in June while the unemployment rate remains unchanged at 4.4%. Any downside surprise could reduce bets on further policy tightening.
• Immediate resistance is located at 0.7008(50%fib), any close above will push the pair towards 0.7028(Higher BB).
• Support is seen at 0.6938 (SMA 20) and break below could take the pair towards 0.6889(61.8%fib).
Recommendation: Good to sell around 0.7000 with stop loss of 0.7080 and target price of 0.6950
