Aussie Dollar Recovers As Risk Sentiment Improves

Fundamental Analysis

* Recovering mood: The Australian dollar slightly recovers against the dollar as concerns over increased tensions in the Middle East diminish following Iran’s announcement that the drone attack did not cause damage to nuclear facilities in Isfahan. Besides that, the purported attack from Israel, yet to be officially acknowledged by them but confirmed by US officials, seemed to be of a limited scale. In the meantime, Iran stated that they currently have no intentions for immediate retaliation. Following the news, market sentiment turns upbeat and the appeal for risky assets improves.

Technical Analysis

* Technical Breakout: AUDUSD was traded higher while currently testing the resistance level 0.6450. MACD which illustrate ongoing bullish momentum signal suggest the pair to further extend its gains.

* Resistance and Targets: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards 0.0.6510 after the price breach above the level 0.6450. Conversely, a failure to breach above the level would indicate a technical correction and head back towards 0.6395.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving forward, investors will look towards economic data for further direction cues. Wednesday’s release of the Australian Consumer Price Index (CPI) is expected to garner significant attention.

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Monitoring

Stay updated on US and Australia data, Middle East tension, Fed updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.