• AUD/USD eased on Friday as escalating tensions in the Middle East rattled investors and heightened risk aversion.
• Markets remained tense as Iran ramped up attacks and vowed to keep the Strait of Hormuz closed, raising oil supply fears.
• Brent crude surged above $100 a barrel, marking its first close above this level since August 29, 2022, amid heightened geopolitical tensions.
• The Reserve Bank of Australia’s monetary policy meeting is due on March 16–17 is anticipated to see a 25-basis-point rate hike to 4.10%, in line with market expectations.
• Investors are eyeing the U.S. Q4 GDP update and January Core PCE data, with Reuters polls expecting a 0.4% month-on-month rise, which could influence Fed policy expectations.
• Immediate resistance is located at 0.7095 (Daily high), any close above will push the pair towards 0.7167 (23.6%fib).
• Support is seen at 0.7056 (38.2%fib) and break below could take the pair towards 0.7012(Lower BB)
Recommendation: Good to sell around 0.7060 with stop loss of 0.7100, and target price of 0.6960
