• AUD/USD firmed on Friday as markets attempted to assess the broader economic impact of the ongoing Middle East conflict.
• U.S. dollar safe-haven demand eased as oil prices retreated slightly from recent highs, helping risk-sensitive currencies like the Australian dollar recover.
• The conflict escalated on Thursday as U.S. and Israeli jets struck targets across Iran and Gulf cities came under renewed bombardment..
• Reports of attacks on oil tankers in Gulf waters and Chinese measures to reduce fuel exports sent crude oil prices up $6 a barrel overnight,.
• RBA Deputy Governor Andrew Hauser is scheduled to speak in New York, and his remarks may provide further guidance on Australia’s interest rate outlook and inflation risks.
• Investors are now wagering on an 80% probability that the Reserve Bank of New Zealand will raise rates from 2.25% in September.
• Immediate resistance is located at 0.7037(38.2%fib), any close above will push the pair towards 0.7136 (SMA 20).
• Support is seen at 0.7004 (Lower BB) and break below could take the pair towards 0.6954 50%fib)
Recommendation: Good to buy around 0.7000 with stop loss of 0.6900, and target price of 0.7100
