• NY opened near 0.6865 after AUD/USD fell overnight on risk-off sentiment

• The pair extended the drop, hit 0.6860 then stalled, buyers then emerged

• Report that Iran & Oman are drafting a protocol for the Strait of Hormuz emerged

• Risk-on took hold; US$, US yields fell and oil eroded some gains

• USD/CNH erased much if its earlier gains while gold, silver, stocks moved upward

• AUD/USD rallied toward the 10-DMA, hit 0.6918, before pulling back a bit

• The pair neared 0.6905 late in the day and traded down only -0.32%

• Long lower wick on today's candle may worry bears but falling RSIs give comfort
audusd


(Christopher Romano is a Reuters market analyst. The views expressed are his own)