FxWirePro: AUD/USD firms slightly, but downward resumption looks likely

AUD/USD edged higher on Tuesday as market sentiment showed tentative signs of improvement despite U.S.-Iran tensions. U.S.-Iran tensions resurfaced after President Donald Trump announced a renewed naval blockade on...

• AUD/USD edged higher on Tuesday as market sentiment showed tentative signs of improvement despite U.S.-Iran tensions. • U.S.-Iran tensions resurfaced after President Donald Trump announced a renewed naval blockade on Iran following fresh missile and drone attacks. • U.S. and Iranian forces exchanged heavy missile and drone strikes over the weekend, with Iran targeting U.S. facilities across the Gulf and saying it had again closed the Strait of Hormuz.

• U.S. CPI data is due for release later on Tuesday, followed by comments from Fed Chair Kevin Warsh, who will deliver the central bank's semi-annual monetary policy report to Congress. • Meanwhile, further rate hikes remain possible, with the Reserve Bank of Australia (RBA) expected to raise the cash rate as early as August as inflation risks persist.

•The Australian central bank has raised interest rates three times this year, lifting the cash rate by a total of 75 basis points to 4.35%. • Immediate resistance is located at 0.6942(SMA20), any close above will push the pair towards 0.6971(38.2%fib).

• Support is seen at 0.6863 (23.6%fib) and break below could take the pair towards 0.6846(Lower BB). Recommendation: Good to buy around 0.6930 with stop loss of 0.7000 and target price of 0.6860