FxWirePro: AUD/ USD eases as risk sentiment remains fragile

AUD/USD eased slightly on Thursday as risk appetite remaining subdued amid persistent U.S.-Iran tensions.. The Australian dollar also faced headwinds from stronger-than-expected U.S. economic data and hawkish remarks...

• AUD/USD eased slightly on Thursday as risk appetite remaining subdued amid persistent U.S.-Iran tensions.. • The Australian dollar also faced headwinds from stronger-than-expected U.S. economic data and hawkish remarks from Federal Reserve officials, reinforcing expectations that U.S. interest rates could remain elevated for longer.. • Geopolitical tensions remained elevated, with U.S. President Donald Trump threatening a broader escalation in strikes on Iran.. • Federal Reserve Vice Chair Philip Jefferson said he would support raising interest rates if inflation fails to improve in the near term, though he believes keeping rates unchanged for now remains appropriate following the Fed's June decision.

• The Federal Reserve is scheduled to decide on interest rates at its July 28-29 meeting. Following softer-than-expected June inflation data, markets have largely priced out the likelihood of a rate hike this month.

• Immediate resistance is located at 0.7022(50%fib) any close above will push the pair towards 0.7029(Higher BB). • Support is seen at 0.6937 (SMA 20) and break below could take the pair towards 0.6906(61.8%fib).

Recommendation: Good to sell around 0.6980 with stop loss of 0.6930 and target price of 0.6930