Australian Dollar Holds Near 0.70 USD Amid Mixed Risk Outlook

The Australian dollar edged up 0.3% to around 0.7000 against the US dollar, making it the best‑performing G10 currency early in the week. Westpac analysts note that the 0.6965 level remains key support, with a break below could push the pair into the low‑0.69s. They attribute recent strength to tentative de‑escalation in US‑Iran tensions, though instability in the Red Sea adds uncertainty. Upcoming data releases, including the US CPI and the Federal Reserve's policy decision, are expected to shape the AUD's trajectory.

In the AUD/JPY pair, technical analysis shows a strong bullish structure with higher highs and higher lows. Traders are watching a support zone around 114.450, previously resistance, as a potential entry point for a long position, targeting a 30‑pip gain with a 10‑pip stop loss. The strategy emphasizes confirmation on lower‑timeframe charts before execution.