FxWirePro: AUD/USD firms as Middle East peace hopes boost risk sentiment

• AUD/USD  firmed on Thursday as hopes for a de-escalation in the Middle East conflict supported risk sensitive Australian dollar.

•Iran said it was reviewing a U.S. peace proposal that could formally end the Gulf war, though key issues including Tehran’s nuclear program and reopening the Strait of Hormuz remain unresolved.

• The improvement in global risk sentiment helped offset March data showing Australia's first goods trade deficit since 2017 as a boom in data centres sucked in imports of processing equipment.

• Australia posted a trade deficit of A$1.84 billion in March, sharply missing expectations for a A$4.25 billion surplus, according to Australian Bureau of Statistics data released Thursday.

• Markets imply around a 20% chance the Reserve Bank of Australia will hike again in June, having already lifted rates by a total 75 basis points to 4.35% over its last three meetings.

•The probability of a move in August sits around 68%, and rates of 4.60% are almost fully priced in for September.

 Immediate resistance is located at 0.7249 (Higher BB), any close above will push the pair towards 0.7284 (23.6%fib).

•  Support is seen at 0.7175(38.2%fib) and break below could take the pair towards 0.7160(SMA 20)

Recommendation: Good to buy   around 0.7240  with stop loss of 0.7170  , and target price of 0.7290