FxWirePro: AUD/USD eases as US-Iran questions mount

• AUD/USD eased  on Tuesday    as renewed U.S. military strikes on Iran cast doubt on a peace deal and tempered a rally in risk assets.

• Investors also monitored reports that Iranian officials were holding talks with Qatari representatives over a possible peace agreement with the United States, although expectations for a quick breakthrough remained limited..

• Attention now turns to Australia’s April monthly CPI data due Wednesday and Q1 capital expenditure figures scheduled for Thursday, both of which could influence expectations for the Reserve Bank of Australia’s policy outlook.

•Median forecasts are for a 0.6% monthly rise in the CPI. That would pull the annual pace back a touch to 4.4% from 4.6%, though mostly because of a government tax break on petrol. Estimates are unusually wide at 4.1% to 4.8%, suggesting the risk of a surprise is considerable.

•The key trimmed mean measure of core inflation is seen rising 0.3% in April, nudging the annual pace up to 3.4% from 3.3%. Forecasts are narrower at 3.3% to 3.5%.

•  Immediate resistance is located at 0.7183 (38.2%fib), any close above will push the pair towards 0.7224(April 17th high).

•  Support is seen at 0.7140(May 5th low) and break below could take the pair towards 0.7094(50%fib).

 Recommendation: Good to buy  around 0.7140 with stop loss of 0.7060 and target price of 0.7200