• AUD/USD traded in narrow range on Monday as investors remained cautious after the United States and Iran exchanged strikes over the weekend and threatened further escalation
• Risk sentiment remained fragile despite reports from Axios that both countries had agreed to suspend attacks and hold talks in Qatar on Tuesday.
• Attention is also shifting to domestic monetary policy developments. Reserve Bank of Australia Assistant Governor Christopher Kent is scheduled to speak in Sydney on Monday, while the minutes from the RBA's July policy meeting will be released on Tuesday.
• Investors will closely examine both events for clues on the central bank's interest rate outlook following recent mixed economic data.
• Investors will closely examine both events for clues on the central bank's interest rate outlook following recent mixed economic data.
• Immediate resistance is located at 0.6960 (38.2%fib), any close above will push the pair towards 0.7014(SMA20)
• Support is seen at 0.6837(23.6%fib) and break below could take the pair towards 0.6816 (Lower BB).
Recommendation: Good to sell around 0.6900 with stop loss of 0.6970 and target price of 0.6830
