FxWirePro:AUD/USD tumbles as geopolitical jitters boost USD after Israel hits Iran

• AUD/USD slumped on Friday amid a broad risk-off sentiment that swept global markets following reports that Israel had launched strikes against Iran.

• The geopolitical escalation sparked a flight to safety, boosting demand for the U.S. dollar and safe-haven assets, while pressuring risk-sensitive currencies like the Australian dollar.

• Adding to uncertainty, the AUKUS security pact is under review, raising questions about the future trajectory of Australia-U.S. trade relations. Any disruptions or policy disagreements could weigh further on AUD sentiment.

•   Looking ahead, Friday’s University of Michigan consumer sentiment survey will be closely watched for clues on U.S. consumer health, while next Wednesday’s FOMC rate decision remains the key macro risk event.  

• At GMT 05:26,the Australian dollar   was down 0.87% at 0.6475 against US dollar.

•  Immediate resistance is located at 0.6547(23.6%fib), any close above will push the pair towards 0.6561(Higher BB).

•  Support is seen at 0.6436 (38.2%fib) and break below could take the pair towards 0.6381(Lower BB).

 Recommendation: Good to buy around 0.6480 with stop loss of 0.6410  and target price of 0.6580