• GBP/AUD edged lower on Tuesday as investors monitored developments in US-Iran tensions for clues on the outlook for oil prices.
• Geopolitical risks remain elevated after U.S. President Donald Trump threatened to annihilate Iran in his U.N. speech if a deal cannot be reached.
• An Iranian official said the Strait of Hormuz could be reopened if key demands are met, raising hopes that a potential easing of tensions could improve the outlook for global oil supplies and reduce energy-market pressure.
• Attention now turns to Australia’s August employment report due Thursday. The consensus forecast calls for employment to rise by 20K, while the unemployment rate is expected to remain at 4.5%. A stronger-than-expected report could reinforce expectations for further RBA tightening.
• Immediate resistance is located at 1.8828 (SMA 20), any close above will push the pair towards 1.8863(38.2%fib).
• Immediate support is seen at 1.8742(23.6%fib) and break below could take the pair towards 1.8679(Lower BB)
Recommendation: Good to sell around 1.8800, with stop loss of 1.8880and target price of 1.8700
