FxWirePro: AUD/USD downside pressure builds, key support level in focus

• AUD/USD  eased on Tuesday  as the ongoing Middle East war dampened risk sentiment, even as easing hopes lingered.

• U.S. President Donald Trump delayed the bombing of Iran's power grid, a move that allayed fear of a prolonged war in the Middle East.

• A survey showed Australia's consumer confidence slid to its lowest level in more than half a century last week as rising borrowing costs and a spike in petrol prices darkened the economic outlook.

• Markets now believe a rate hike in May from the Reserve Bank of Australia is a toss-up after two consecutive rises this year. About 65 bps of tightening is priced in for the rest of 2026.

•Focus shifts to Wednesday’s Australia inflation report for guidance on monetary policy as geopolitical tensions persist.

•  Immediate resistance is located at 0.7027(38.2%fib), any close above will push the pair towards 0.7068 (SMA 20).

•  Support is seen at 0.6943 (Lower BB) and break below could take the pair towards 0.6908(50%fib)

Recommendation: Good to sell around 0.6980  with stop loss of 0.7070 and target price of 0.6920