• AUD/USD eased on Tuesday as investors continued to assess the evolving Middle East conflict and its implications for global risk sentiment.
• AUD/USD continues to maintain an underlying bullish tone, although near-term direction is likely to remain heavily dependent on headlines surrounding the U.S.-Iran conflict and energy market developments.
• Attention now turns to several key domestic and U.S. economic events this week. Australia’s federal budget, due Tuesday, will be closely watched for any measures that could add to inflation pressures.
• The U.S. April CPI report is expected to show inflation rising 0.6% month-on-month and 3.7% year-on-year.
• Further focus will shift to Australia’s Q1 Wage Price Index on Wednesday, which could provide fresh insight into persistent services inflation and the Reserve Bank of Australia’s policy outlook.
• Immediate resistance is located at 0.7261(Higher BB), any close above will push the pair towards 0.7276(23.6%fib).
• Support is seen at 0.7189(SMA 20) and break below could take the pair towards 0.7163(38.2%fib).
Recommendation: Good to buy around 0.7200 with stop loss of 0.7120 and target price of 0.7280
