• AUD/USD slipped to hit one -month low on Monday as escalating middle east tensions boosted demand for safe-haven dollar.
• The U.S. targeted key Iranian nuclear facilities over the weekend, marking a significant escalation in regional tensions.
• The strikes have raised alarm across the international community, fueling fears of a broader conflict in the Middle East and potential disruptions to global energy markets..
• The commodity-sensitive currencies often track global risk sentiment and tend to take a hit when equity markets slide.
• Looking ahead, Australia will publish the monthly inflation reading for May on Wednesday. Expectations are centred on an annual rise of 2.3%, slowing from a gain of 2.4% in April.
• Immediate resistance is located at 0.6443(38.2%fib), any close above will push the pair towards 0.6499(June 20th high).
• Support is seen at 0.6391 (Lower BB) and break below could take the pair towards 0.6355(38.2%fib).
Recommendation: Good to sell around 0.6410 with stop loss of 0.6480 and target price of 0.6330
