Post by Instantia.co

AUD/USD Update: AUD Falters After Breaching $0.72 On Friday As Middle East Tensions Weigh On Risk The Aussie Dollar has faltered this morning, falling as much as ~0.8% amid thin liquidity as Iranian Forces began attacking ships in the Strait of Hormuz after Israel continued to break the ceasefire agreement in Lebanon and the US intercepted an Iranian-flagged vessel in the Guld of Oman. The gap lower this morning came after AUD/USD notched a fresh cycle high, breaching the $0.72 handle on Friday after Iran declared the Strait of Hormuz open. ▪️Across the board, the moves seen last week have been reversed, albeit we have seen these flows play out several times recently before losses are erased through Europe and NY. Oil is firmer, WTI is up 8%, and the Bloomberg Dollar Index is 0.3% firmer. S&P500 Futures are down 0.8% alongside an offer in US Treasuries. ▪️Technically, AUD/USD remains in a firm uptrend, despite this morning's price action, bulls target the $0.73 handle a break through here opens the long-term topside target of $0.75. Support comes in at the 20-Day EMA ($0.7059). ▪️The macro docket is light this week, focus will remain on developments in the Middle East, where the situation remains fluid. Locally, the only data of note is S&P Global PMIs on Thursday. #marketupdate #AUD #USD #US #risk #EMA #dollar