FxWirePro: AUD/USD vulnerable as Middle East crisis deepens

• AUD/USD traded largely flat on Thursday but the broader tone remained tilted to the downside as negative sentiment continues to build due to escalalating Middle East conflict.

• Geopolitical tensions intensified further following reports of explosions across Iran after U.S. officials signaled strikes on several key facilities, prompting investors to adopt a more cautious stance.

• Oil prices surged after Iran reiterated threats to close the Strait of Hormuz, a vital global energy shipping route.

• Market participants are awaiting U.S. economic data later on Thursday, including weekly initial jobless claims, expected at 219,000, and the May Producer Price Index report, both of which could influence expectations for Federal Reserve policy.

•In Australia, interest rate expectations remain firmly anchored, with futures markets assigning a 99% probability that the Reserve Bank of Australia will leave its cash rate unchanged at next Tuesday's policy meeting.

•  Immediate resistance is located at 0.7037(June 11th high), any close above will push the pair towards 0.7065(50%fib).

•  Support is seen at 0.6992(April 13th low) and break below could take the pair towards 0.6969(61.8%fib).

 Recommendation: Good to sell  around 0.7020 with stop loss of 0.7100 and target price of 0.6960