• AUD/USD strengthened on Monday as market sentiment improved on hopes that the Strait of Hormuz could soon re-open, easing concerns about disruptions to global oil shipments and trade flows.
• Hopes for progress in re-opening the Strait of Hormuz helped the Aussie recover from a setback last week when a soft set of jobs data was taken as lessening the chance of a near-term hike in interest rates.
•Markets now imply just a 12% probability of a quarter-point rise in the 4.35% cash rate at the Reserve Bank of Australia's next meeting on June 16.
• Looking ahead, key Australian economic data later this week, including the April monthly CPI report on Wednesday and first-quarter capital expenditure figures on Thursday, both of which could influence expectations for future RBA policy moves and near-term direction in the Australian dollar.
• Immediate resistance is located at 0.7176 (38.2%fib), any close above will push the pair towards 0.7191(SMA20).
• Support is seen at 0.7103(Lower BB) and break below could take the pair towards 0.7088(50%fib).
Recommendation: Good to buy around 0.7150 with stop loss of 0.7100 and target price of 0.7230
