• AUD/USD eased slightly on Wednesdey as fading hopes of a U.S.-Iran breakthrough offset support from a relatively resilient Australian dollar.
• Markets are turning cautious ahead of the U.S. July inflation report, while renewed uncertainty over the Strait of Hormuz is keeping risk sentiment and commodity prices in focus.
•Iran has said the Strait of Hormuz will remain closed unless the United States meets its demands, raising concerns about prolonged disruptions to global energy supplies.
• The latest developments have pushed Brent crude toward $90 a barrel and increased inflation concerns, potentially complicating the Federal Reserve's policy outlook.
•The immediate focus for currency markets is the U.S. July CPI report, due later Wednesday. A Reuters poll expects headline inflation to rise 3.4% year-on-year, while core inflation is forecast at 2.5%.
• Immediate resistance is located at 0.7069 (50%fib), any close above will push the pair towards 0.7103(Higher BB).
• Support is seen at 0.7013(SMA20) and break below could take the pair towards 0.6976( (61.8%fib).
Recommendation: Good to sell around 0.7070, with stop loss of 0.7130 and target price of 0.7000
