• AUD/USD rebounded from five-week low on Tuesday as news of a ceasefire between Israel and Iran announced by President Trump triggered risk rally.
• Trump announced that a "complete and total" ceasefire between Israel and Iran will take effect, aiming to end the 12-day conflict, shortly after both nations issued fresh threats of retaliation.
• The Aussie dollar staged a notable rebound to $0.6491, reversing from a five-week low of $0.6373 touched overnight, as risk sentiment improved.
• Commodity-sensitive currencies exhibit a strong correlation with global risk sentiment and are prone to volatility amid geopolitical developments.
• Looking ahead, Australia will publish the inflation reading for May on Wednesday. Expectations are centred on an annual rise of 2.3%, slowing from a gain of 2.4% in April.
• Immediate resistance is located at 0.6542(23.6%fib), any close above will push the pair towards 0.6565(Higher BB).
• Support is seen at 0.6436(38.2%fib) and break below could take the pair towards 0.6414(Lower BB).
Recommendation: Good to buy around 0.6480 with stop loss of 0.6390 and target price of 0.6560
