AUD/USD softened on Monday as deteriorating prospects for a U.S.-Iran peace agreement boosted demand for the greenback.
• U.S. President Donald Trump described Iran’s latest response as “totally unacceptable,” while Iranian officials reportedly dismissed Washington’s stance, deepening fears of prolonged geopolitical tensions.
• Australia’s government will unveil its annual budget on Tuesday, with officials pledging spending restraint to help curb inflation.
• Markets expect a smaller-than-forecast deficit and potential changes to investment tax rules that critics say favour wealthy property investors.
•On the data front, Australia will release first-quarter wages data as policymakers assess whether another interest rate hike is needed to cool demand. Forecasts point to wage growth rising 0.8% quarter-on-quarter, unchanged from the previous reading.
• Immediate resistance is located at 0.7250 (Higher BB), any close above will push the pair towards 0.7277(23.6%fib).
• Support is seen at 0.7201(Daily low) and break below could take the pair towards 0.778(SMA 20).
Recommendation: Good to buy around 0.7200 with stop loss of 0.7150 and target price of 0.7280
