• AUD/USD jumped nearly 1.31% on Wednesday in a broad-based rally after the United States and Iran agreed to a two-week ceasefirer.
• U.S. President Donald Trump agreed to a ceasefire with Iran, driving oil prices below $100 a barrel and lifting assets in oil-dependent Asian economies.
• Investor risk appetite rebounded quickly after the ceasefire announcement, coming just hours before Trump’s deadline for Iran to reopen the Strait of Hormuz expired.
• The Reserve Bank of Australia has hiked rates by a total 50 basis points to 4.10% as inflation has been stubbornly stuck well above its target range of 2% to 3%.
•Markets imply a 55% chance of another quarter-point rise in May, though that was down from near 70% last week, and see rates at 4.61% by year-end.
• Immediate resistance is located at 0.7069( 38.2%fib), any close above will push the pair towards 0.7127 (23.6%fib).
• Support is seen at 0.6982(50%fib) and break below could take the pair towards 0.6889(61.8%fib)
Recommendation: Good to sell around 0.7030 with stop loss of 0.6950 , and target price of 0.7100
