• AUD/USD edged lower on Thursday as lack of progress in peace talks weighed on investor sentiment.
• Iran on Wednesday captured two container ships seeking to exit the Gulf via the Strait of Hormuz, tightening its grip on the crucial waterway, as investors watch if the fragile ceasefire in the Middle East will hold.
• The two sides now remain divided on aceasefire, blockade, nuclear issues and control of thestrait, leaving the strategic waterway still effectively shut and triggering an energy shock in ablow to economies across the world.
• On the data front, Australia’s manufacturing sector returned to expansion territory, with the latest survey from S&P Global on Thursday showing the manufacturing PMI rising to 51.0..
• Immediate resistance is located at 0.7197(23.6fib%), any close above will push the pair towards 0.7255(Higher BB).
• Support is seen at 0.7095 (38.2%fib) and break below could take the pair towards 0.7045 (SMA 20)
Recommendation: Good to buy around 0.7140 with stop loss of 0.7000, and target price of 0.7200
