• AUD/USD strengthened on Monday as hopes of a de-escalation in Middle East tensions supported risk sensitive Australian dollar.
• U.S. President Donald Trump reportedly called off planned military strikes, while Iran signaled it would suspend attacks provided the United States refrains from further military action.
• Oil prices tumbled 4%, easing inflation concerns and reducing fears of supply disruptions.
• Key events this week include an address by RBA Governor Michele Bullock on Tuesday, followed by Australia's second-quarter CPI data and the Federal Reserve's policy decision on Wednesday.
• Strong Australian inflation could reinforce expectations of further RBA tightening, while the Fed's guidance will shape the outlook for the U.S. dollar.
• Immediate resistance is located at 0.7030(Higher BB), any close above will push the pair towards 0.7042(50%fib).
• Support is seen at 0.6979(Daily low) and break below could take the pair towards 0.6937(SMA20).
Recommendation: Good to sell around 0.7020 with stop loss of 0.7100 and target price of 0.6950
