• AUD/USD eased on Friday as investors assess U.S.–Iran peace developments, leading to a partial reversal of recent risk-on flows.
• Markets showed signs of fatigue as the initial relief rally lost momentum, with traders questioning whether diplomatic progress would translate into a firm, near-term agreement.
• Sentiment had initially been supported by comments from U.S. President Donald Trump, who signalled renewed optimism around a potential peace agreement after pausing planned military action against Iran.
• Attention now shifts to the Reserve Bank of Australia policy meeting due on Tuesday, where the central bank is widely expected to leave the Official Cash Rate unchanged at 4.35%. The decision will be closely monitored for any forward guidance on inflation and the timing of potential future policy adjustments.
• Immediate resistance is located at 0.7062 (50%fib), any close above will push the pair towards 0.7120 (SMA 20).
• Support is seen at 0.7003(Lower BB) and break below could take the pair towards 0.6970 (61.8%fib).
Recommendation: Good to sell around 0.7060, with stop loss of 0.7120 and target price of 0.7000
