FxWirePro: AUD/USD hovers near two-month low, outlook bearish

• AUD/USD  hovered near two-month low on Friday   as   fears of a lengthy energy shock from the Middle East conflict darkened the outlook for global growth and the demand for commodities.

•Investors took a modicum of comfort from U.S. President Donald Trump's decision to extend his ultimatum to strike Iranian power plants by 10 days, after pushing back his initial 48-hour deadline by five days.

•  Oil prices advanced as investor caution grew over the uncertain trajectory of diplomatic efforts, bolstering the dollar.

• Economists see inflation heading higher, with CPI nearing 4.5% and potentially 5% next quarter if energy stays elevated.

• Markets price a 68% chance of a May rate hike, with rates seen at 4.75% by year-end.

•  Immediate resistance is located at 0.6962 (38.2%fib), any close above will push the pair towards 0.7033 (SMA 20).

•  Support is seen at 0.6872 (50%fib) and break below could take the pair towards 0.6832 (Lower BB)

Recommendation: Good to sell around 0.6910 with stop loss of 0.6960, and target price of 0.6850