AUD/USD’s recovery halts at 0.7060 as Trump vows to close Hormuz

💡 DMK Insight

The AUD’s bounce from 0.6990 signals potential bullish momentum, but traders should be cautious. Closing the gap at 0.7055 is a positive sign, yet the broader market context remains shaky, especially with the USD’s strength as a safe haven. The AUD often reacts to commodity prices, so keep an eye on any fluctuations in iron ore or gold, which could influence its direction. If the AUD can maintain momentum above 0.7055, we might see a push towards 0.7100, but a failure to hold this level could lead to a quick retracement back to the lows. Watch for economic data releases from Australia, as they could provide additional volatility and trading opportunities. The flip side is that if risk sentiment shifts, the AUD could face pressure again, especially if the USD strengthens further. Traders should monitor the 0.6990 support level closely; a break below could signal a bearish trend resuming.