• AUD/USD firmed in Monday as Australian dollar continues to gain traction as investors awaited updates on Middle East talks
• The ceasefire has largely halted the fighting sparked by U.S.-Israeli strikes on Iran two months ago, but markets remain focused on the still-shuttered Strait of Hormuz, a critical chokepoint driving the surge in energy prices.
• The war has driven a sharp surge in oil prices, stoked inflation, and darkened the outlook for global growth. The Strait of Hormuz, which typically carries around a fifth of global oil and gas shipments, remains central to market concerns.
• Traders will be closely watching Australia’s March Consumer Price Index (CPI) report, scheduled for release on Wednesday..
• Headline CPI is expected to rise 4.7% YoY in March, up from 3.7% in February. Any upside surprise in inflation could strengthen expectations of a 25-basis-point rate hike by the RBA.
• Immediate resistance is located at 0.7181(Daily high), any close above will push the pair towards 0.7221(23.6%fib).
• Support is seen at 0.7114(38.2%fib) and break below could take the pair towards 0.7074(SMA 20).
Recommendation: Good to buy around 0.7150 with stop loss of 0.7070 and target price of 0.7210
