FxWirePro: AUD/USD softens amid mounting Iran war uncertainty

• AUD/USD  eased  on Monday    as Australian dollar succumbed to intensifying global risk aversion as the United States and Iran traded escalating threats in the Gulf.

• Geopolitical tensions escalated after Donald Trump threatened Iran’s electricity infrastructure, prompting Tehran to warn of retaliatory attacks, raising fears of prolonged instability.

 • Ongoing infrastructure risks are likely to keep oil and gas prices elevated for an extended period, reinforcing inflation concerns.

•  Oil prices were again choppy with Brent last up 0.4% at $112.62 a barrel, and 55% higher on the month so far. U.S. crude    gained 0.8% to $98.98.

•Looking ahead, Australia’s February monthly CPI release on Wednesday will be a key catalyst in shaping expectations for the RBA’s official cash rate path.. 

•  Immediate resistance is located at 0.7034(38.2%fib), any close above will push the pair towards 0.7067 (SMA 20).

•  Support is seen at 0.6973 (Lower BB) and break below could take the pair towards 0.6918(50%fib)

Recommendation: Good to sell around 0.7000 with stop loss of 0.7100, and target price of 0.6920