• AUD/USD eased on Monday as Australian dollar succumbed to intensifying global risk aversion as the United States and Iran traded escalating threats in the Gulf.
• Geopolitical tensions escalated after Donald Trump threatened Iran’s electricity infrastructure, prompting Tehran to warn of retaliatory attacks, raising fears of prolonged instability.
• Ongoing infrastructure risks are likely to keep oil and gas prices elevated for an extended period, reinforcing inflation concerns.
• Oil prices were again choppy with Brent last up 0.4% at $112.62 a barrel, and 55% higher on the month so far. U.S. crude gained 0.8% to $98.98.
•Looking ahead, Australia’s February monthly CPI release on Wednesday will be a key catalyst in shaping expectations for the RBA’s official cash rate path..
• Immediate resistance is located at 0.7034(38.2%fib), any close above will push the pair towards 0.7067 (SMA 20).
• Support is seen at 0.6973 (Lower BB) and break below could take the pair towards 0.6918(50%fib)
Recommendation: Good to sell around 0.7000 with stop loss of 0.7100, and target price of 0.6920
